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Sagot :
In long-run equilibrium, all firms in a pure competition market situation will have identical costs even though they may use different production and operation techniques. ---- true
Long Run Equilibrium of the Firm :
In the long run, firms reach equilibrium when they adjust their assets to produce at the lowest point of the long-term average cost (AC) curve. This curve is tangent to the demand curve defined by market prices. In the long run, the company will only get a normal profit. Markets are in long-term equilibrium when prices perfectly match production costs and the economy is at its full potential. In the long-run equilibrium, unemployment falls to its natural state. When this happens, the economy is using all its resources and the actual GDP equals the potential GDP.
What does it mean that the market is in long-term equilibrium?
A perfectly competitive market reaches long-term equilibrium when not all firms are making economic profits and the number of firms in the market does not change.
Learn more about Long run equilibrium :
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