Asked by
Abigail Gerrard
on Oct 27, 2024
Verified
When a perfectly competitive firm is in long-run equilibrium,the firm is producing at _____ cost.
A) maximum average total
B) maximum average variable
C) minimum marginal
D) minimum average total
Long-run Equilibrium
A state in which all factors of production are optimally allocated in the long term, resulting in the efficient operation of markets with no tendencies for change under constant conditions.
Average Total Cost
Average Total Cost is the total cost of production divided by the quantity of output produced, encompassing both fixed and variable costs in the calculation.
- Understand the relationship between economic profits, average total cost, and market prices in determining firm behavior in the long run.
Verified Answer
BK
Learning Objectives
- Understand the relationship between economic profits, average total cost, and market prices in determining firm behavior in the long run.