When a perfectly competitive market is in long-run equilibrium,price is equal to marginal cost,the individual firm is operating at the minimum of its short-run and long-run average cost curves,and economic profit equals zero.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms will produce at a point where price is equal to marginal cost, which occurs at the minimum point of the firm's short-run and long-run average cost curves. In the long run, firms will adjust their production to achieve zero economic profit. Therefore, in long-run equilibrium in a perfectly competitive market, all of these conditions will hold true, making statement A true.

When a Perfectly Competitive Market Is in Long-Run Equilibrium,price Is