In a long-run perfectly competitive equilibrium,

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In long-run equilibrium, price and marginal cost must be equal to minimum short-run and long-run average total cost. This is because in a perfectly competitive market, firms have no market power and are forced to operate at the lowest possible cost in order to compete. Therefore, any firm operating with higher costs would face losses and exit the market in the long run. As a result, only firms operating at the minimum efficient scale would remain in the market, producing at the minimum average total cost and at the price level set by the market.

In a Long-Run Perfectly Competitive Equilibrium