In long-run equilibrium for a perfectly competitive industry, price equals
A) short-run marginal cost.
B) short-run average cost.
C) long-run average cost.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

In long-run equilibrium for a perfectly competitive industry, price equals short-run marginal cost, short-run average cost, and long-run average cost, as firms produce at the minimum point of their long-run average cost curve where all these costs are equal.

In Long-Run Equilibrium for a Perfectly Competitive Industry, Price Equals