in long-run equilibrium in a competitive market, firms are operating at ?
Correct answer: B. all of these answers are correct
- A. the minimum of their average-total-cost curves
- B. all of these answers are correct
- C. their efficient scale
- D. zero economic profit
- E. intersection of marginal cost and marginal revenue
Explanation
In long-run competitive equilibrium, entry and exit lead to zero economic profit, operation at the minimum of ATC, and production at the efficient scale; firms also choose output where MC equals MR. Thus all listed conditions are correct under the standard model.
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