In the long run in perfectly competitive markets ruthless pr

In the long run in perfectly competitive markets ruthless price competition keeps price equal to o A marginal cost and average cost e B marginal revenue but greater than AC e C. marginal cost but greater than AC o D. Marginal cost but less than AR

Solution

In long run perfectly competitive market profit-maximizing point at which long-run marginal cost is equal to the price and should be greater than AC. If the average cost will be higher than price, then competitive firm never earns a profit. The firm earns zero economic profit at a point at which price equal to the average total cost. so price should be equal to marginal cost and greater than average cost.

option C