What are the conditions for the long-run equilibrium of the competitive market?
[1 mark]
A
LMC = LAC = P
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
SMC = SAC = LMC
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
P = MR
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
P = AVC
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution
The correct option is A LMC = LAC = P Producer’s equilibrium is the stage where the producer gets the maximum profit at the minimum cost. It is derived when price or AR = LAC = LMC