Figure 14-7

-Refer to Figure 14-7. When the market is in long-run equilibrium at point W in graph (b), the firm represented in graph (a) will

Question

Figure 14-7
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-Refer to Figure 14-7. When the market is in long-run equilibrium at point W in graph (b), the firm represented in graph (a) will

Quizplus · Accepted Answer

In long-run equilibrium, firms in perfectly competitive markets produce where price equals marginal cost and average total cost, resulting in zero economic profit. This is depicted at point W in graph (b), where the firm's price equals its average total cost.

Figure 14-7 ​

Figure 14-7