In the long run in perfectly competitive markets,individual firms will operate at very different output levels.

Question

Quizplus · Accepted Answer

In perfectly competitive markets, all firms are price takers and produce homogeneous products. Therefore, they all face the same market price and have the same cost structure. This results in all firms operating at the same output level in the long run, where each firm produces at the point where marginal cost equals market price.

In the Long Run in Perfectly Competitive Markets,individual Firms Will