In the long run,firms in a perfectly competitive market choose to produce a quantity:

Question

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In a perfectly competitive market, firms will continue to produce until they reach the point where their marginal cost equals the market price. At this point, they will earn zero economic profits, but will still cover their average total costs. Therefore, the optimal choice is to produce a quantity that earns zero economic profits. B and C are not the best choices because producing below minimum average variable costs would result in shutdown in the short run, and producing even if marginal costs are higher than average variable costs would lead to economic losses.

In the Long Run,firms in a Perfectly Competitive Market Choose