Question

When the perfectly competitive firms in an industry are in long run equilibrium then:

• A. P=MR=SAC=LAC.
• B. D=MR=SMC=LMC.
• C. P=MR=Lowest point on the L curve.
• D. All of the above

Answer 1

The correct option is D All of the above

The condition for the long run equilibrium is $LMC=LMR=P=LAR=LAC=SMC=SAC$; The firm produces that level of output at which the LAC is the minimum possible.