In the long run,perfectly competitive firms produce at the output level that has the minimum

Question

Quizplus · Accepted Answer

In the long run, perfectly competitive firms will produce at the output level where their average total cost is at a minimum. This is because in the long run, firms can adjust their inputs and make changes to their production process in order to minimize their costs. At the minimum point of the average total cost curve, the firm is producing at the most efficient scale, meaning they are using their resources in the most productive way possible. Therefore, in order to maximize profits, firms will produce the output level where their average total cost is at its minimum point.

In the Long Run,perfectly Competitive Firms Produce at the Output