# Tag Info

## New answers tagged perfect-competition

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In long-run equilibrium for a perfectly competitive market, each firm has $ATC = MC = P$, where $MC$ is the firm's marginal cost, $ATC$ is the firm's average total cost, and $P$ is the market price (since firms are price-takers). In a typical producer graph, this is the $MC$ curve going through the minimum of the $ATC$ curve, where the $MR = P$ curve is ...

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There could be many answers, but the one that comes to my mind immediately is product differentiation. If you're selling exactly the same thing as everyone else, buyers are going to flock to the lowest price buyer, so you everyone will have to follow a price cut. But say you are selling ice cream cones on the boardwalk at the beach. Any little thing, such as ...

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