3. The licorice industry is competitive. Each firm produces 2 million strings of licorice per year. The

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3. The licorice industry is competitive. Each firm produces 2 million strings of licorice per year. The strings have an average total cost of $0.20 each, and they sell for $0.30.

a. What is the marginal cost of a string?

b. Is this industry in long-run equilibrium? Why or why not?

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Principles Of Microeconomics

ISBN: 9780324319163

4th Edition

Authors: N. Gregory Mankiw

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Question Posted: Nov 04, 2024 08:00 AM

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3. The licorice industry is competitive. Each firm produces 2 million strings of licorice per year. The

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Principles Of Microeconomics

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