When the perfectly competitive firm and industry are both in long run equilibrium
A)P = MR = SMC = LMC
B)P = MR = SAC = LAC
C)P = MR =Lowest point on the LAC curve
D)All of the above

Question

Quizplus · Accepted Answer

In long-run equilibrium for a perfectly competitive firm and industry, price equals marginal revenue (P = MR), and both are equal to short-run marginal cost (SMC) and long-run marginal cost (LMC) at the point of production. Additionally, price equals the short-run average cost (SAC) and long-run average cost (LAC), and the firm operates at the lowest point on the LAC curve, indicating efficient production and zero economic profit.

When the Perfectly Competitive Firm and Industry Are Both in Long