Regardless of quantity in long-run equilibrium, the industry price cannot exceed the

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In the long-run equilibrium, all firms in the industry will have adjusted their production levels to minimize costs and maximize profits. At this point, the industry price cannot exceed the long-run average cost of supplying that quantity because if it did, firms would earn excess profits, which would attract new entrants into the industry until the excess profits were competed away, thereby increasing the supply and reducing the price to the long-run equilibrium level.

Regardless of Quantity in Long-Run Equilibrium, the Industry Price Cannot