In a perfectly competitive industry in long-run equilibrium, all firms will have:

Question

Quizplus · Accepted Answer

In a perfectly competitive industry in long-run equilibrium, all firms will adjust their output so that price equals marginal cost (P = MC), which is the condition for profit maximization. Since the price is given by the market and is the same for all firms, their marginal costs will be equal at the equilibrium output. Choices A, C, and D do not necessarily hold true in long-run equilibrium for a perfectly competitive industry.

In a Perfectly Competitive Industry in Long-Run Equilibrium, All Firms