Ultimate access to all questions.
In long-run equilibrium, the supply curve of a perfectly competitive firm is most accurately represented by the firm's long-run:
Explanation:
The correct answer is A because the long-run marginal cost schedule serves as the supply curve for a perfectly competitive firm. The firm's demand curve is determined by the equilibrium price in the market. The fundamental principle of profit maximization is that marginal revenue (MR) equals marginal cost (MC), which holds true in long-run equilibrium.
In a perfectly competitive market, the firm's primary decision is the quantity of output to produce, which is determined at the level where MR = MC. The demand curve is perfectly elastic, and the firm continuously seeks ways to reduce costs in the long run.