In a long-run equilibrium in a perfectly competitive market, firms are selling at a price equal to average cost.

Name: In a long-run equilibrium in a perfectly competitive market, firms are selling at a price equal to average cost.
Brand: Quizplus
Rating: 4.8 (59 reviews)

Question

Quizplus · Accepted Answer

In a long-run equilibrium in a perfectly competitive market, firms produce at the minimum average total cost, which means they are selling at a price equal to average cost. This allows for zero economic profit in the long-run.

In a Long-Run Equilibrium in a Perfectly Competitive Market, Firms