In the long-run equilibrium for a perfectly competitive market,firms will choose the level of output where

Question

Quizplus · Accepted Answer

In the long-run equilibrium for a perfectly competitive market, firms will choose the level of output where their long-run average total cost (LRATC) is minimized. This is because in the long-run, firms can adjust both their inputs and outputs to minimize costs and maximize profits. By choosing the level of output where their LRATC is minimized, firms can produce at the most efficient scale and compete effectively in the market. This also ensures that there are no incentives for firms to enter or exit the market, as they are earning only normal profits. Therefore, choice C is the correct answer.

In the Long-Run Equilibrium for a Perfectly Competitive Market,firms Will