Unit 3: Are Businesses Efficient? Product Markets and Efficiency

Lesson 8/9b: Pure Competition: Long Run Equilibrium and Efficiency

Key Graphs

Pure Competition: Long Run Equilibrium - Q is the profit maximizing Quantity (MR=MC); What We Get - Q is also the allocatively efficient quantity (P=MC); What We Want - Q is also the prodictively efficient quantity (MC=ATC); Producing at a Minimum Cost

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