In long-run equilibrium, the typical perfectly competitive firm has no incentive to:

Question

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In long-run equilibrium, the typical perfectly competitive firm produces at the minimum point on its average total cost curve where price equals marginal cost. This means that the firm is producing at its most efficient level, and any increase or decrease in output or plant size would lead to higher costs and lower profits. Additionally, in a perfectly competitive market, there are no barriers to entry or exit, and firms can easily adjust their production levels to match market demand without affecting the market price. Therefore, the firm has no incentive to change output, plant size, or enter/exit the industry.

In Long-Run Equilibrium, the Typical Perfectly Competitive Firm Has No