Which is true of a purely competitive firm in long-run equilibrium?
A)Average fixed cost equals price.
B)Marginal cost equals marginal product.
C)Price equals marginal cost.
D)Average variable cost equals marginal cost.

Question

Quizplus · Accepted Answer

In long-run equilibrium for a purely competitive firm, price equals marginal cost. This condition ensures that the firm is producing at the most efficient point, where the price consumers are willing to pay is equal to the cost of producing one more unit of output.

Which Is True of a Purely Competitive Firm in Long-Run