When a perfectly competitive firm is in long-run equilibrium, the firm is producing at:

Question

Quizplus · Accepted Answer

In the long run, a perfectly competitive firm will adjust its output level until it reaches the minimum point on its long-run average total cost curve (LRATC). This means that the firm is producing at the point where the average cost of producing its last unit of output is as low as it can be in the long run. Therefore, the answer is D, minimum long-run average total cost.

When a Perfectly Competitive Firm Is in Long-Run Equilibrium, the Firm