Which of the following conditions results in firms producing at the minimum average total cost in the long run?
A)Free entry and exit of firms
B)Government price control
C)Economies of scale
D)Diseconomies of scale
E)Industry expansion

Question

Quizplus · Accepted Answer

In the long run, free entry and exit of firms lead to a competitive market where firms produce at the minimum average total cost, as any economic profits or losses are eliminated, ensuring firms operate efficiently.

Which of the Following Conditions Results in Firms Producing at the Minimum