The stable, long-run equilibrium in a competitive market occurs when the market price equals the lowest point on a firm's average total cost curve.

Question

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In a competitive market, the stable, long-run equilibrium occurs when firms produce at the minimum point of their average total cost curve, ensuring they are as efficient as possible, and the market price equals this minimum average total cost, allowing firms to cover all their costs without making economic profits.

The Stable, Long-Run Equilibrium in a Competitive Market Occurs When