The statement that does not hold true for a perfectly competitive firm in long-run equilibrium is
A)Its economic profit will be zero.
B)It will minimise average total cost.
C)It will charge a price equal to marginal cost.
D)Marginal cost will be minimised.

Question

Quizplus · Accepted Answer

In long-run equilibrium, a perfectly competitive firm will have zero economic profits (A), minimize average total cost (B), and charge a price equal to marginal cost (C). However, it is not true that marginal cost (MC) will be minimized (D); instead, MC will be equal to the price and average total cost at the profit-maximizing output level.

The Statement That Does Not Hold True for a Perfectly