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Optimal Price and Output in Perfect Competition
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In the long run, the perfectly competitive firm will operate at the point where marginal cost equals the minimum of average cost, because at that point, entry is no longer profitable:
P = MC = AC
TR = TC
The perfectly competitive firm earns zero economic profit in the long run.
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Supply Analysis in Monopolistic Competition:there is no well-defined supply function.
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Total, Variable, Fixed, and Marginal Cost and Output:Variable,Fixed,Output:is the summation of all expenses that do not change as the level of production:varies.Total[Practice
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Optimal Price and Output in Perfect Competition:costcompetitive firm earns zero economic profit in the long run.
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2020-05-18
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