Question
Suppose that the pen-making industry is perfectly competitive.Also suppose thatall current firms and any potential firms that might enter the industry have identical cost curves,
Suppose that the pen-making industry is perfectly competitive.Also suppose thatall current firms and any potential firms that might enter the industry have identical cost curves, with minimum ATC = $1.25 per pen.
If the market equilibrium price of pens is currently $1.50, what would you expectthe equilibrium priceto be in the long run?
multiple choice
- $1.25
- $1.00
- $1.50
- $0.25
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Intermediate Microeconomics and Its Application
Authors: Walter Nicholson, Christopher M. Snyder
12th edition
978-1133189022, 1133189024, 1133189032, 978-1305176386, 1305176383, 978-0357687000, 978-1133189039
