After all firms have entered or exited the market the perfect competition in the long run, price equals what?
A average fixed cost
B average total cost
C quantity
D all of these
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Answer :-
In perfect competition market during long run the price is equals to Average total cost .
Option B is correct .
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Perfect competition market.
It is a form of market where there is large number of buyers and sellers of a commodity Homogeneous product is sold and its price is determined by the forces of supply and demand and individual wires for seller has no control over price .
Three vital conclusions .
1. A form under perfect competition is a price taker not a price maker.
2. Demand curve of the firm under perfect competition is perfectly elastic.
3. A form under perfect competition on only normal profit in the long run .
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