Why is long-run equilibrium position of purely competitive

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Reference no: EM13239590

At profit-maximizing output, what four letters indicate:

Total revenue? (Remember, four letters-a rectangle.)
Total cost?
Total variable cost?
Total fixed cost?
Total economic profit?
1. If price falls below what point, this firm will not operate in the short run? (No letter needed, just an explanation.)

2. What will happen to this firm's price, output, and economic profit in the long run? Why?

3. Where will the price settle in the long run? Remember, all purely competitive firms are theoretically doomed to make only normal profit in the long run.

4. Why is the long-run equilibrium position of a purely competitive firm productively and allocatively efficient?

Reference no: EM13239590

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