This is the last section from the Competitive Choices assignment for ECON550 from University of Arizona. It is already uploaded to course hero. It will not upload my document and I can't copy and past the excel table showing my calculations. However, I am not sure how to find the net price in Long Run Equalibrium. He gives us a set price of $70 per lesson in the previous section. I know price will fall due to competition but how do you calculate it?

d.Consider the long run situation in the market where there will be strong price competition, dance studios can change their size, and dance studios easily enter and exit the market.What do you anticipate will be the price of a dance lesson in the long run?Based on that price, what will be the profit maximizing studio size and number of instructors?Explain why you come to these conclusions.(2 points)

Net Price in Long Run equilibrium_______________.

Profit maximizing square footage in Long run equilibrium_____1,000______.

Profit maximizing number of workers in long run equilibrium ____7_____.

Explanation for your choices.

Entry from long run competition drives the price down to the minimum of average total cost for everybody in the industry. Price is the minimum of average total cost.