Firms in a perfectly competitive industry are producing goods efficiently in the long run if each is producing at the minimum point of the

Question

Quizplus · Accepted Answer

Firms in a perfectly competitive market produce goods efficiently in the long run when they produce at the minimum point on the long-run average cost (LAC) curve. This is because at this point, the firm is producing at the lowest possible average cost, given the scale of production. Therefore, choice (C) is the correct answer.

Firms in a Perfectly Competitive Industry Are Producing Goods Efficiently