Question

Why the price of a product under perfect competition will be equal to the lowest point on the long run average cost curve

Answer 1

Answer:

In the long run in a perfectly competitive market—because of the process of entry and exit—the price in the market is equal to the minimum of the long-run average cost curve. In other words, goods are being produced and sold at the lowest possible average cost.

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Answer 2

Answer:

In the long run in a perfectly competitive market ,because of the process of entry and exit the price in the market is equal to the smallest of the long run average cost curve. In other words, goods are being produced and sold at the lowest possible cost

Explanation:

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