If you must determine the long-run equilibrium output of a perfectly competitive firm and you are permitted to see only one curve, which of the following curves is most helpful?

Question

Quizplus · Accepted Answer

In the long run, a perfectly competitive firm produces at the point where price equals both marginal cost and average cost. Therefore, the average cost curve is most helpful in determining the long-run equilibrium output, as it shows where the firm covers all its costs, including normal profit.

If You Must Determine the Long-Run Equilibrium Output of a Perfectly