Which is true of a purely competitive firm in long-run equilibrium?
A) Average fixed cost equals price.
B) Marginal cost equals marginal product.
C) Price equals marginal cost.
D) Average variable cost equals marginal cost.

Question

Quizplus · Accepted Answer

In long-run equilibrium, a purely competitive firm produces where price (P) equals marginal cost (MC), as this is where profit is maximized. This also ensures that resources are allocated efficiently.

Which Is True of a Purely Competitive Firm in Long-Run