Explain Why,when All Adjustment Have Taken Place,the Perfectly Competitive Firm

question 74

Essay

Explain why,when all adjustment have taken place,the perfectly competitive firm will operate at the minimum of its short-run and long-run average total cost curves and earn zero economic profit.

---

Definitions:

Insight

Deep understanding or realization that comes from a detailed analysis of data, information, or circumstances, often leading to new perspectives or solutions.

Obvious Observation

A statement or fact that is clear, self-evident, or easily understood without the need for detailed explanation.

Potential Solution

A possible method or way to address, solve, or improve a specific problem or challenge.

Implementation Stage

The phase in a project or plan where strategies and ideas are put into action.