Results are out! Find what you Get quick advice or join the chat
Hey! Sign in to get help with your study questionsNew here? Join for free to post

Long run equilibrium in perfect competition?

Announcements Posted on
For applicants, undergrads and postgrads: Find out what's happening during Student Money Week here 05-02-2016
Are postgrad degrees a waste of time? Have your say and be in with a chance of winning a £30 Amazon voucher 29-01-2016
  1. Offline

    Ok, I understand that abnormal profits, or losses, won't be sustained in the long run in a PC market.

    In the long run the MC curve will cross the optimum point of the ATC curve as well as the MR line at the same time so AR=AC and profits are 'normal'.

    What I don't understand is, is this the optimum point of the LRAC curve, or just of the ATC curve, which resides at a particular point (above the MES) on the LRAC?

    Because my notes from my teacher say it's the 'long run cost curve' but it wouldn't make sense if it was the lowest point of the LRAC (the MES) as one firm cannot produce up to that level in PC surely?

    I'm also confused over whether there can be both a separate industry and a firm's LRAC?


Submit reply


Thanks for posting! You just need to create an account in order to submit the post
  1. this can't be left blank
    that username has been taken, please choose another Forgotten your password?
  2. this can't be left blank
    this email is already registered. Forgotten your password?
  3. this can't be left blank

    6 characters or longer with both numbers and letters is safer

  4. this can't be left empty
    your full birthday is required
  1. By joining you agree to our Ts and Cs, privacy policy and site rules

  2. Slide to join now Processing…

Updated: March 30, 2012
TSR Support Team

We have a brilliant team of more than 60 Support Team members looking after discussions on The Student Room, helping to make it a fun, safe and useful place to hang out.

Today on TSR

Dropping out of Oxford

Find out what it's like in Ethereal World's blog

How much money do you spend a week at uni?
Quick reply
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.