Why is the Marginal Factor Cost (MFC) always equal to the Average Factor Cost (AFC) under perfect competition?

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Economics · Microeconomics

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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The firm is a price taker and not a price maker in the factor market.

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Answer 1

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Answer 4

The firm is a price taker and not a price maker in the factor market.

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