Which is the most accurate statement?

Question

Quizplus · Accepted Answer

In the long run, the perfect competitor's price is equal to the average total cost, meaning that they are only able to earn a normal profit, but not an economic profit. Option A is incorrect because in the long run, the perfect competitor only earns normal profit, not economic profit. Option B is incorrect because perfect competition is characterized by a large number of small firms, not by large firms. Option D is incorrect because the long run for the perfect competitor involves adjustments to inputs and outputs, while the short run involves fixed inputs.

Which Is the Most Accurate Statement