Question

In long-run equilibrium, a purely competitive firm will operate where price is ________.

Answer 1

Answer: The correct answer is "D. equal to MR, MC, and minimum ATC.".

Explanation: In long-run equilibrium, a purely competitive firm will operate where price is equal to MR, MC, and minimum ATC.

In perfect competition the companies are accepting price, therefore they will produce as long as the price is equal to the marginal cost and the marginal income thus ensures that the sale of each unit of product does not cost more than the profit obtained from the sale. of this and when the average total cost, that is, the total cost of producing each unit of product, is the least possible.

Answer 2

Answer:

A

Explanation:

In long-run equilibrium a purely competitive firm will operate where price is: A. greater than MR but equal to MC and minimum ATC.

A normal profit (zero economic profits) is what we would expect individual firms in a perfectly competitive market to earn in the long run because there are no barriers to entry.

And in long run equilibrium the P = MC (allocative efficiency, more later) and P = minimum ATC (productive efficiency, more later).

The correct answer to the question is A