Which of the following does not hold true for a perfectly competitive firm in long-run equilibrium?
A)Its economic profit will be zero.
B)It will minimize average total cost.
C)It will charge a price equal to marginal cost.
D)Marginal cost will be minimized.

Question

Quizplus · Accepted Answer

In long-run equilibrium, a perfectly competitive firm will produce at a level where price equals marginal cost and average total cost is minimized, but marginal cost itself is not necessarily minimized.

Which of the Following Does Not Hold True for a Perfectly