Which of the following is true in perfect competition at long-run equilibrium?

Question

Quizplus · Accepted Answer

In perfect competition at long-run equilibrium, all firms produce at the minimum point of their average total cost curve (ATC), resulting in ATC being minimized. This means that price (P) is equal to both ATC and marginal cost (MC), since firms cannot charge a higher price without losing customers to rivals. Furthermore, in the long run, new firms can easily enter or exit the market, causing economic profits to be driven to zero in the long run. Therefore, all of the above statements are true in perfect competition at long-run equilibrium.

Which of the Following Is True in Perfect Competition at Long-Run