In long-run equilibrium, a perfectly competitive firm will produce an output level at which its long-run average cost curve is upward sloping.

Question

Quizplus · Accepted Answer

In long-run equilibrium, a perfectly competitive firm will produce an output level at which its long-run average cost curve is at its minimum point or tangent to the lowest point on the curve, which is typically flat or downward sloping at that point. Therefore, the statement is false.

In Long-Run Equilibrium, a Perfectly Competitive Firm Will Produce an Output