In the long- run equilibrium in a perfectly competitive market, the firms produce at the _______ possible average total cost and the price equals the _______ possible average total cost.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms produce at the lowest possible average total cost in the long run, and the price equals this lowest possible average total cost, ensuring that firms make normal profit but no economic profit.

In the Long- Run Equilibrium in a Perfectly Competitive Market