In long-run perfectly competitive equilibrium,marginal cost
A)Is greater than ATC.
B)Is less than ATC.
C)Equals the minimum of the ATC.
D)Equals the minimum of the AVC.

Question

Quizplus · Accepted Answer

In long-run perfectly competitive equilibrium, firms are producing at their efficient scale, where their ATC is minimized. This implies that the marginal cost (MC) should equal the minimum of the ATC. Therefore, the correct choice is C.

In Long-Run Perfectly Competitive Equilibrium,marginal Cost