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Suppose the competitive tablet market is in long-run equilibrium. If at this equilibrium, the typical firm produces 10,000 tablets per month, total costs for this
Suppose the competitive tablet market is in long-run equilibrium. If at this equilibrium, the typical firm produces 10,000 tablets per month, total costs for this production is $5,000,000, and the minimum of the average variable costs is $75, what price will
a. Induce entry into the market? When the price rises above $_______
b. Cause firms to shut down production in the short run? When the price falls below $_______
c. Result in firms exiting the market in the long run? When the price falls below $
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