In long-run competitive equilibrium, the market equilibrium price equals

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In long-run competitive equilibrium, firms in the market earn normal profits, which means that price equals marginal cost. Marginal cost represents the cost of producing one additional unit of output, and in a perfectly competitive market, firms produce at the point where marginal cost equals price. Therefore, the market equilibrium price equals marginal cost in the long-run.

In Long-Run Competitive Equilibrium, the Market Equilibrium Price Equals