In the long run, a perfectly competitive company should always produce at the production level where the long run average cost is minimized Is this statement true Explain your answer Pindyck, R andD Rubinfeld (2001), Microeconomics,5th edition, Pearson Prentice Hall, Madrid (Chapter8) Chapter8, The Maximization of Profits and Competitive Supply

The Answer is in the image, click to view ...

In the long run, a perfectly competitive company should always produce at the production level where the

Fantastic news! We've Found the answer you've been seeking!

Question:

In the long run, a perfectly competitive company should always produce at the production level where the long-run average cost is minimized. Is this statement true? Explain your answer.

Pindyck, R.andD. Rubinfeld (2001), Microeconomics,5th edition, Pearson-Prentice Hall, Madrid. (Chapter8). Chapter8,"The Maximization of Profits and Competitive Supply"