In a perfectly competitive industry over the long run, competition ensures that goods sold to consumers will be produced at _____________________ cost.
A) the lowest possible
B) zero
C) the highest possible

Question

Quizplus · Accepted Answer

In a perfectly competitive industry, there are many buyers and sellers, and no single buyer or seller can influence the market price. This means that producers have to compete with each other on price and quality to attract customers, which drives prices down to the lowest possible cost. Therefore, in the long run, goods sold to consumers will be produced at the lowest possible cost.

In a Perfectly Competitive Industry Over the Long Run, Competition