In the long run,a typical perfectly competitive firm will produce at the minimum point of its long-run average total cost curve and the minimum point of its short-run average total cost curve.

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In a perfectly competitive market, firms are price-takers and unable to influence the market price. Therefore, in the long run, firms will adjust their production to the point where their long-run average total cost curve (LRATC) is minimized. This is because if a firm produces at a higher cost than its competitors, it will not be able to compete in the market and earn profits. Moreover, in the short run, a firm may have some fixed costs that cannot be changed in the short run. Therefore, it will produce at the minimum point of its short-run average total cost curve (SRATC), which may not necessarily be at the minimum point of its LRATC. However, in the long run, the firm will adjust its fixed costs and production level to reach the minimum point of its LRATC.

In the Long Run,a Typical Perfectly Competitive Firm Will Produce