Narrbegin Exhibit 7.9 A typical firm in a perfectly competitive market
-As shown in Exhibit 7.9, the perfectly competitive firm is in long-run equilibrium at an output of:

Question

Narrbegin Exhibit 7.9 A typical firm in a perfectly competitive market  
-As shown in Exhibit 7.9, the perfectly competitive firm is in long-run equilibrium at an output of:

Quizplus · Accepted Answer

In perfect competition in the long-run, firms produce where price (P) equals marginal cost (MC) and where price equals minimum average total cost (ATC). In this case, both conditions are met at an output of 400 units per week (where P = MC = ATC). Therefore, C is the correct answer.