Question

When a perfectly competitive firm is in long-run equilibrium, the firm is producing at _____ cost. maximum average variable maximum average total minimum marginal minimum average total

Answer 1

Answer: Minimum average total

Explanation:

In the long run, all costs are variable so the firm will be able to adjust its costs in such a way that it will be producing at the lowest possible average total cost in order to minimize its cost.

In such a market, economic profit will not be made because more firms will keep coming into the market if there are economic profits till the profits are eventually brought down to zero.