Regardless of quantity in long-run equilibrium, the competitive price-taker market price cannot exceed the
A) long-run average cost of supplying that quantity.
B) total variable cost of supplying that quantity.
C) long-run total cost of supplying that quantity.
D) minimum long-run marginal cost of supplying that quantity.

Question

Quizplus · Accepted Answer

In long-run equilibrium, the market price in a competitive market is equal to the minimum point of the long-run average cost curve, ensuring firms earn zero economic profit.

Regardless of Quantity in Long-Run Equilibrium, the Competitive Price-Taker Market