In the long- run equilibrium, perfectly competitive firms produce the level of output such that

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In the long-run equilibrium, perfectly competitive firms produce at the level of output where the marginal cost (MC) equals the price (P), which is also the point where average total cost (ATC) is minimized. This ensures that firms are producing efficiently and are able to cover all their costs, including a normal profit.

In the Long- Run Equilibrium, Perfectly Competitive Firms Produce the Level