Sorry, I forgot to mention that in this case, the demand curve is above the LAC at the point where MR = MC. In other words, the price is set higher than the long-run average cost.
I am trying to wrap my head around the concept of production efficiency, and its application in a monopolistic market.
Many textbooks have a similar definition for production efficiency. The firm will reach its production efficiency if it produces at the lowest point of LAC.
But I am wondering:
Under monopoly, if the firm somehow decides to produce at the lowest point of LAC(where also MR = MC), will it achieve production efficiency?