In long-run equilibrium, a purely competitive firm will operate where price is
A)greater than MR but equal to MC and minimum ATC.
B)greater than MR and MC, but equal to minimum ATC.
C)greater than MC and minimum ATC, but equal to MR.
D)equal to MR, MC, and minimum ATC.

Question

Quizplus · Accepted Answer

In long-run equilibrium, a purely competitive firm will operate where price equals marginal revenue (MR), marginal cost (MC), and minimum average total cost (ATC), ensuring that the firm is producing at its most efficient point and earning normal profit.

In Long-Run Equilibrium, a Purely Competitive Firm Will Operate Where