Asked by Manda Gibbs on Jun 12, 2024
Verified
In the long-run equilibrium of a competitive market with free entry and exit, firms operate at their __________ scale.
Efficient Scale
The level of production at which the average total costs of production are minimized.
Long-Run Equilibrium
A state in which economic forces such as supply and demand are balanced, and in the context of production, all inputs, including prices and wages, can be adjusted.
- Assess the motivations behind firms entering, remaining in, or leaving a market.
Verified Answer
RO
Learning Objectives
- Assess the motivations behind firms entering, remaining in, or leaving a market.
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