In a long-run perfectly competitive market, the firms will produce and operate when: a. Fixed cost > LATC (long-run average total cost curve) b. P > LATC (long-run average total cost curve) c. P < latc="" (long-run="" average="" total="" cost="" curve)=""> d. a and c

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter9: Perfect Competition
Section: Chapter Questions
Problem 7QP
icon
Related questions
Question

In a long-run perfectly competitive market, the firms will produce and operate when:

a. Fixed cost > LATC (long-run average total cost curve)

b. P > LATC (long-run average total cost curve)

c. P < latc="" (long-run="" average="" total="" cost="" curve)="">

d. a and c

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Profits
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Microeconomics
Microeconomics
Economics
ISBN:
9781337617406
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Microeconomics: Principles & Policy
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning
Economics:
Economics:
Economics
ISBN:
9781285859460
Author:
BOYES, William
Publisher:
Cengage Learning