-Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. The current market price is 2 cents per page. With no change in demand and technology, in the long run, the price will

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Quizplus · Accepted Answer

In the long run, perfectly competitive firms will produce at the minimum point of their average total cost curve. At this point, the firm's marginal cost is equal to the market price. In this case, Fast Copy's marginal cost is 2 cents per page, which is equal to the current market price. Therefore, in the long run, the price will remain unchanged.

-Fast Copy Is a Perfectly Competitive Firm