Which of the following does not hold true for a perfectly competitive firm in long-run equilibrium?
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 produce at a level where price equals marginal cost and average total cost is minimized, resulting in zero economic profit. However, marginal cost is not necessarily minimized; it is equal to price and average total cost at the equilibrium output level.

Which of the Following Does Not Hold True for a Perfectly