When firms in a perfectly competitive market face the same costs,how must they be operating in the long run

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms operate at their efficient scale in the long run. This means that they are producing at the level where they are minimizing their average total costs, which is the point where they are maximizing their profits. Since all firms in the market are facing the same costs, they will all be producing at the same level of output, and no individual firm will be able to earn economic profits in the long run.

When Firms in a Perfectly Competitive Market Face the Same