Firms operate at minimum average total cost in the long run in:
A) oligopoly.
B) monopoly.
C) pure competition.
D) monopolistic competition.

Question

Quizplus · Accepted Answer

In the long run, firms operating in a pure competition market structure adjust their output and scale of operations to operate at the minimum point of their average total cost curve, ensuring they are as efficient as possible due to the high level of competition.

Firms Operate at Minimum Average Total Cost in the Long