For each perfectly competitive firm in the long run ........

General Studies (CHSL) Indian Economy

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For each perfectly competitive firm in the long run

price = marginal costs = average variable costs

price = average profit

price = marginal costs = minimum average total costs

price = minimum average variable costs

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Explanation:

However, in long-run, productive efficiency occurs as new firms enter the industry. Competition reduces price and cost to the minimum of the long run average costs. At this point, price equals both the marginal cost and the average total cost for each good (P = MC = AC).