In the long run, under conditions of perfect competition, the buyer will eventually be able to...
Question:
In the long run, under conditions of perfect competition, the buyer will eventually be able to buy the product at a
a. price equal to the lowest point on the ATC curve past the optimal scale of operation.
b. price below cost.
c. price equal to the lowest point on the ATC curve at the optimal scale of operation.
d. discount.
Price-Taker:
In a perfect competition market, the firms and companies are price-taker. The reason for becoming a price-taker is no entry barriers in the market. Consumers also become price-takers when making deals in an imperfectly competitive market such as a monopoly or others.
Answer and Explanation: 1
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View this answerThe correct option is c. price equal to the lowest point on the ATC curve at the optimal scale of operation.
It is correct because it will be the...
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Average Total Cost: Definition & Formula
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Chapter 3 / Lesson 23
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Learn what is the average total cost. Learn its use, its formula, and how to apply it.
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