In perfect competition, firms enter the market whenever the market price exceeds the minimum average variable cost.

Name: In perfect competition, firms enter the market whenever the market price exceeds the minimum average variable cost.
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Question

Quizplus · Accepted Answer

In perfect competition, firms enter the market when the market price exceeds the minimum average total cost, not just the average variable cost, to ensure they can cover all costs and earn a normal profit.

In Perfect Competition, Firms Enter the Market Whenever the Market