In a perfectly competitive industry, market price in the long run is equal to the minimum points of the SRATC and the LRATC curves.

Question

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In a perfectly competitive industry, in the long run, firms adjust their scale of operation such that the market price equals the minimum points of both the short-run average total cost (SRATC) and the long-run average total cost (LRATC) curves, ensuring that firms are producing at the most efficient scale and earning normal profit.

In a Perfectly Competitive Industry, Market Price in the Long