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

Question

Quizplus · Accepted Answer

In the long run, firms in a perfectly competitive market will produce at the quantity where price equals marginal cost. At this point, the firm is earning zero economic profits since its total revenue equals its total cost. If the firm were to produce at a higher quantity, it would incur losses since its total cost would exceed its total revenue. If it were to produce at a lower quantity, it would miss out on potential profits. Therefore, the best choice is A where firms in a perfectly competitive market choose to produce a quantity that earns zero economic profits.

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