In a perfectly competitive market in which all firms are maximizing their economic profits, the demand and supply curves intersect at a price of $8. From this we know that each

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In a perfectly competitive market, price is equal to marginal cost for each firm in the long run. Therefore, the fact that the demand and supply curves intersect at a price of $8 means that each firm's marginal cost of producing the good is also $8.

In a Perfectly Competitive Market in Which All Firms Are