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For each perfectly competitive firm in the long run

  1. A
    price = marginal costs = average variable costs
  2. B
    price = average profit
  3. C
    price = marginal costs = minimum average total costs
  4. D
    price = minimum average variable costs

Solution & Step-by-step Explanation

In the long run, firms in a perfectly competitive market operate at the minimum point of their average total cost (ATC) curve where they earn zero economic profits. At this long-run equilibrium point:
Price=Marginal Cost (MC)=Minimum Average Total Cost (ATC)

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For each perfectly competitive firm in the long run
A
price = marginal costs = average variable costs
B
price = average profit
C
price = marginal costs = minimum average total costs
D
price = minimum average variable costs

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MicroeconomicsMarket StructurePerfect Competition

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