Sumera Nawaz ECONOMICS   -   Managerial Economics

Where is the optimal point of production for a firm operating under perfect competition in the long run?

In the long run, a perfectly competitive firm will produce at the point where marginal cost (MC) equals average total cost (ATC), and this is also where MC equals marginal revenue (MR). At this point, the firm is making normal profit (zero economic profit), as any deviation would prompt market entry or exit, driving profits to zero.
What is the primary characteristic of a Nash Equilibrium in game theory? When should a firm continue producing in the short run even if it is incurring losses? Which pricing strategy involves setting a high initial price for a new or innovative product to "skim" segments of the market willing to pay the higher price? When analyzing a firm's cost structure, what does the term "economies of scope" refer to? How to determine the optimal capital structure for a firm according to the Modigliani-Miller theorem without taxes? What is the main reason for a firm to engage in price discrimination? Where is the optimal point of production for a firm operating under perfect competition in the long run? Why is the kinked demand curve model used in oligopoly markets? Which factor can lead to economies of scale in production? How to determine the profit-maximizing output level for a monopolist?