cip In a perfectly competitive market O A the longrun market

cip In a perfectly competitive market O A. the long-run market price is equal to the minimum average cost of the industry because of free entry and exit of fims O B. the long-run market price is equal to the average fixed cost of the industry Oc. the long-nun market price is less than the minimum average cost of the industry O D. the long-run market price is more than the minimum average cost of the industry because of free entry and ext of fims Click to select your answer. P/n PrtSnHome #6 4

Solution

Solution-

In a perfectly competitive market: the long-run market price is equal to the minimum average cost of the industry because of free entry and exit of firms.

The correct option is A. the long-run market price is equal to the minimum average cost of the industry because of free entry and exit of firms.

Reason-

A perfectly competitive market is a fictitious market where competition is at its highest level.There is correct knowledge in information or knowledge of time in information flow. Knowledge is freely available to all participants.There are no barriers to entry or exit of the market.Firms produce homogeneous, identical output that are not branded.