Question

explain different possibilities of a firm under perfect competition in long run​

Answer 1

Answer:

As explained above, a firm is in equilibrium under perfect competition when marginal cost is equal to price. But for the firm to be in long-run equilibrium, besides marginal cost being equal to price, the price must also be equal to average cost.

Answer 2

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A firm is in equilibrium under perfect competition when marginal cost is equal to price. But for the firm to be in long run equilibrium, besides marginal cost being equal to price, the price must also be equal to average cost.

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1. Economic profit and economic loss.
2. Economic versus accounting concepts of profit and loss.
3. The long run and zero economic profits.
4. Entry, exit, and production costs.
5. Changes in demand and in production cost.
6. Changes in demand.
7. Changes in droduction cost.