In pure competition over the long run:
A) product price is at its lowest possible level.
B) costs per unit are at their lowest possible level.
C) there is no economic, or excess, profit going to the sellers.
D) all of the above.

Question

Quizplus · Accepted Answer

In pure competition over the long run, product prices tend to be at their lowest possible level due to competition, costs per unit are minimized as firms strive for efficiency to stay competitive, and there are no economic profits because any potential excess profits are eroded by new entrants and competitive pricing.

In Pure Competition Over the Long Run