-Using the above figure, the price facing the perfectly competitive firm in the long run will be

Question

Quizplus · Accepted Answer

In the long run, a perfectly competitive firm will produce where its marginal cost (MC) curve intersects the market price, which is also where the MC curve intersects the average total cost (ATC) curve at its minimum point. This ensures the firm is producing efficiently and earning normal profit, which is represented by P3 in the given context.

-Using the Above Figure, the Price Facing the Perfectly Competitive