Question
Suppose in the automobile industry with free entry and exit, the marginal cost is constant at $5,000, two identical manufacturers are currently producing 1,000 cars
Suppose in the automobile industry with free entry and exit, the marginal cost is constant at $5,000, two identical manufacturers are currently producing 1,000 cars each and earning zero economic profit. If the equilibrium price is $20,000, then what is the fixed cost for each manufacturer?
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International Business
Authors: John Daniels, Lee Radebaugh, Daniel Sullivan
15th edition
133457230, 978-0133457230
