The following figure shows equilibrium at the industry and firm level.Figure 10.6
In the figure,
S 1 , S 2 , S 3 are the market supply curves.D 1 and D 2 are the market demand curves.MC is the marginal cost curve of the firm.MR 1 and MR 2 are the marginal revenue curves of the firm.ATC is the average-total-cost curve of the firm.
-In the long run, a perfectly competitive firm will produce:

Question

The following figure shows equilibrium at the industry and firm level.Figure 10.6
  In the figure,
S 1 , S 2 , S 3 are the market supply curves.D 1 and D 2 are the market demand curves.MC is the marginal cost curve of the firm.MR 1 and MR 2 are the marginal revenue curves of the firm.ATC is the average-total-cost curve of the firm.
-In the long run, a perfectly competitive firm will produce:

Quizplus · Accepted Answer

In the long run, a perfectly competitive firm will produce where P = minimum ATC, which is represented by point E in the figure. At this point, the firm is earning normal profits and there is no incentive to enter or exit the industry. If the firm were to produce at any other point, it would either be incurring losses or not maximizing profits.

The Following Figure Shows Equilibrium at the Industry and Firm