When a competitive price-taker market is in long-run equilibrium
A) the firms in the market will earn zero economic profit.
B) the average total cost of the firms in the market will be minimized.
C) every unit of the relevant good that is valued more than its opportunity costs will be produced and sold.
D) all of the above are correct.

Question

Quizplus · Accepted Answer

In long-run equilibrium, firms earn zero economic profit (A), operate at minimum average total cost (B), and produce where price equals marginal cost, ensuring all units valued more than their opportunity cost are produced (C).

When a Competitive Price-Taker Market Is in Long-Run Equilibrium