When two firms in a perfectly competitive market seek to maximize profit in the long run,they eventually end up ________.
A) producing at a suboptimal level
B) minimizing the total cost of production
C) earning the same level of profits
D) producing the same level of output

Question

Quizplus · Accepted Answer

In the long run, firms in a perfectly competitive market will produce at the point where marginal cost equals marginal revenue, which is also the point where average total cost is minimized, thus minimizing the total cost of production.

When Two Firms in a Perfectly Competitive Market Seek to Maximize