In the long run, pure competition forces firms to produce at the minimum possible average total cost and the firms will charge a product price equal to that cost.

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In a purely competitive market, firms are price takers and can only survive in the long run by producing at the minimum possible average total cost. This ensures they can charge a price equal to the average total cost to remain competitive and still cover all their costs.

In the Long Run, Pure Competition Forces Firms to Produce