Competitive firms operate at minimum of average cost curve

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Society’s total surplus is maximized in perfectly competitive markets. Statement 2: In the long run, only perfectly competitive firms operate at the minimum of the average cost (AC) curve.

A) Both statements (1) and (2) are true

B) Both statements (1) and (2) are false.

C) Statement (1) is true; statement (2) is false.

D) Statement (1) is false; statement (2) is true.

Reference no: EM131164550

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