In long-run equilibrium,a perfectly competitive firms produces at the output level at which:

Question

Quizplus · Accepted Answer

In the long-run equilibrium, a competitive firm produces at the output level where its average total cost is minimized. At this point, the firm is operating at its most efficient scale, which allows it to produce at the lowest possible cost per unit. This means that the firm is producing at the point where it can earn the maximum profit. Therefore, in the long-run equilibrium, a perfectly competitive firm produces at the level where average total cost is minimized.

In Long-Run Equilibrium,a Perfectly Competitive Firms Produces at the Output