Question

When firms in a perfectly competitive market face the same costs, in the long run they must be operating a. under diseconomies of scale. b. with small, but positive, levels of profit. c. at their efficient scale. d. where price is equal to average fixed cost.

Answer 1

Answer:

d. where price is equal to average fixed cost.

Explanation:

Firms involved in a perfectly competitive market face the same cost, they will theoretically make zero profit on the long run. This happen at the point where price is equal to average fixed cost.