If there are no fixed costs of production in the long run th

If there are no fixed costs of production, in the long run, the perfectly-competitive firm will produce

(a) where AV C is minimized.
(b) more units than would have been produced had there been fixed costs of production.

(c) fewer units than would minimize the firm’s average variable cost.

(d) None of the above.

Solution

Where AVC is minimized because it is the combination of fixed cost and variable cost and as fixed cost tends to be zero in long run , so they will produce till the time AVC is minimized