In a perfectly competitive market, what relationship holds true in the long run?

Show Answers

Price equals both average cost and marginal costPrice is equal to average cost and total costPrice matches marginal cost and total costTotal revenue is the same as total variable cost

Explanation

In the long run under perfect competition, firms produce where price equals average cost and marginal cost, ensuring zero economic profit. Option A correctly represents this equilibrium, while the other options do not accurately describe the long-run condition.