Consider a competitive market with a large number of identical firms.The firms in this market do not use any resources that are available only in limited quantities.In long-run equilibrium,market price is determined by

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In long-run equilibrium, firms in a competitive market will adjust their production to the point where the market price is equal to their minimum average total cost. At this point, firms will earn only a normal profit, which means they cover all of their costs, including their opportunity costs, but they do not earn any economic profit. Sunk costs do not affect the determination of the market price in the long run.

Consider a Competitive Market with a Large Number of Identical