![]() The theory of perfect competition has its roots in late-19th century economic thought. At this point, price equals both the marginal cost and the average total cost for each good (P = MC = AC). Competition reduces price and cost to the minimum of the long run average costs. However, in the long-run, productive efficiency occurs as new firms enter the industry.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |