Problem
In long-run equilibrium in a perfectly competitive market, each firm operates at minimum average cost. Do firms also operate at minimum long-run average cost when such markets are out of equilibrium in the short run? Wouldn't firms make more in short-run profits if they opted always to produce that output level for which average costs were as small as possible?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.