Respuesta :
P equals AFC will not hold true for a competitive firm in long-run equilibrium.
How do you define a long-run equilibrium?
Over time, businesses might readily enter or leave a market that is only competitive. Additionally, pure competition presupposes that businesses and resources may be easily shifted in response to demand. Therefore, if businesses within an industry are making economic profits, more businesses will enter the market, bringing down the market price to the equilibrium price and quantity that only permits normal earnings.
If businesses are losing money, some will exit the market, which will decrease supply and raise prices, allowing the remaining businesses to turn a regular profit. The product's minimum average total cost (ATC) and long-term market price are equal. The long-run equilibrium in a market that is only competitive can be summed up as follows since providers will produce until marginal cost = market price:
Marginal cost plus average total cost equals market price.
Learn more about equilibrium with the help of the given link:
brainly.com/question/24279582
#SPJ4
