In the long run in a perfectly competitive market:

Question

Quizplus · Accepted Answer

In the long run, firms in a perfectly competitive market operate at the efficient scale, where they produce at the lowest possible average cost. This means that they earn zero economic profit (i.e. normal profit) since any positive profit would attract new firms to enter the market and compete, driving down prices and reducing profits back to zero in the long run. Therefore, options A and C are incorrect.

In the Long Run in a Perfectly Competitive Market