Which of the following is true of the prefect competition long run equilibrium?

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Which of the following is true of perfect competition?

The answer is d. There are many suppliers in perfect competition making an identical product. No supplier makes enough of the supply of the product that they can influence the market equilibrium. Each firm is a price taker.

Which of the following is true of a perfectly competitive firm in the equilibrium?

Perfect competition will achieve equilibrium, when all firms make only normal profit in the long run, i.e., TC = TR. Each firm will produce at the profit maximizing level of output which is attained when MC = MR and the MC curve should intersect the MR curve from below for maximising profit in absolute terms.