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Economics-Perfect Competition.

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(Querist)
10 August 2007 Dear Sir,

Can you please explain with the diagram that in the long run under perfect competition,AR=MR=LMC=LAC=SMC=SAC ?

Thanking you in advance,


ARE NARASIMHAM
CPT-ICAI.
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KAAPIL

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KAAPIL (Expert)
31 October 2007 Basic principle is that in the long run all the firms make normal profits. The profits are maximum at AR=MR and hence this equation. Good Luck.
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Ravikumar.G

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Ravikumar.G (Expert)
09 November 2007 very informative and thanks a lot.
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