Price 13 12 11 10 MC 9 ATC 8 AVC 7 6.3 6 5 4.5 4 3 2 1 1 2 3 4 5 6 7 8 9 10 11 Quantity
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Long-run equilibrium price: In the long run, firms in a perfectly competitive market will earn zero economic profit. This means that the price will be equal to the average total cost (ATC) of production. Looking at the table, we can see that the ATC is $6 at a Show more…
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