Firms in a perfectly competitive market produce at minimum average cost in the short run and the long run.

Name: Firms in a perfectly competitive market produce at minimum average cost in the short run and the long run.
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Question

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In the short run, firms in a perfectly competitive market may not produce at minimum average cost due to fixed factors of production; however, in the long run, they adjust and produce at minimum average cost as they can change all factors of production.

Firms in a Perfectly Competitive Market Produce at Minimum Average