In A Highly Competitive Market What Happens To Long Run Price?

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amber Jhon answered
Basically in perfect competitive market there are many buyers and sellers because of the easy entry and exit. Moreover, the products which are offered in perfect competition are also similar or identical products. For selling their goods in this competition each seller is a price taker and sets his price according to the standard prices because he has to face a strong competition from rivals.

The price is equal to Average revenue and that is equal to marginal revenue. If the company is able to survive in the market then in the long run its price will be more than the average total cost incurred by the company. In other words in the long run, the line
representing market price should be above the minimum point of the ATC curve.

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