Figure 6.3
-Figure 6.3 shows the cost structure of a firm in a perfectly competitive market. The firm will stay in the market in the long run only if the market price is greater than or equal to

Question

Quizplus · Accepted Answer

In a perfectly competitive market, a firm will remain in the market in the long run only if it can cover all of its costs, including both variable and fixed costs. This means the market price must be at least equal to the average total cost (ATC) for the firm to make zero economic profit and still find it worthwhile to stay in the market. The choice that represents the ATC at the minimum point or higher is the correct answer.

Figure 6.3 -Figure 6.3 Shows the Cost Structure of a Firm in Firm