In the long run, the price for a perfectly competitive firm

Question

Quizplus · Accepted Answer

In the long run, a perfectly competitive firm will produce at the minimum point of its average total cost curve in order to maximize profits. At this point, price will equal the minimum average total cost, meaning that there is no incentive for firms to enter or exit the market, resulting in zero economic profits in the long run. Therefore, D is the correct answer as it states that the price will equal the minimum average total cost.

In the Long Run, the Price for a Perfectly Competitive