In the long-run competitive equilibrium, P = MC = SRATC = LRATC. Because, P = MR, we can write the condition as P = MR = MC = SRATC = LRATC.

In the long-run competitive equilibrium, P = MC = SRATC = LRATC. Because, P = MR,we can write the condition as P = MR = MC = SRATC = LRATC. Now, let’s look at thecondition as consisting of four parts: (a) P = MR, (b) MR = MC, (c) P = SRATC, and (d)SRATC = LRATC. To explain (b) –MR = MC – we say that this condition exists because theperfectly competitive firm attempts to maximize profits, and this is how it does it. What are the explanation for (a), (c), and (d)?