-When perfectly competitive businesses practice minimum cost pricing,they are:
A)making zero economic profits and passing on all possible cost savings to consumers
B)fulfilling the condition P = MC
C)in their short-run equilibrium position
D)minimizing average fixed costs
E)minimizing average variable cost

Question

-When perfectly competitive businesses practice minimum cost pricing,they are:
A)making zero economic profits and passing on all possible cost savings to consumers 
B)fulfilling the condition P = MC 
C)in their short-run equilibrium position 
D)minimizing average fixed costs 
E)minimizing average variable cost

Quizplus · Accepted Answer

In perfect competition, firms make zero economic profits in the long run, as they pass on cost savings to consumers, ensuring prices equal average total costs.

-When Perfectly Competitive Businesses Practice Minimum Cost Pricing,they Are