The long-run equilibrium for a perfectly competitive firm occurs at the minimum point of the ________.

Question

Quizplus · Accepted Answer

In the long-run equilibrium for a perfectly competitive firm, the firm is earning only normal profits. This means that the price must be equal to the minimum point of the average total cost curve, where the firm is covering all of its costs and earning zero economic profit. Therefore, the correct choice is C, the average total cost curve.

The Long-Run Equilibrium for a Perfectly Competitive Firm Occurs at the Minimum