In long-run equilibrium,all firms in a pure competition market situation operating under a condition of certainty will have identical costs even though they may use different production and operation techniques.

Question

Quizplus · Accepted Answer

In the long-run, firms in a perfectly competitive market will have to produce at their minimum average cost to survive. This forces all firms to use the most efficient production methods available, leading to identical costs across all firms. Therefore, option A is correct.

In Long-Run Equilibrium,all Firms in a Pure Competition Market Situation