A small bakery sells pies in a perfectly competitive market. If pies sell for $13/pie and the average total cost per pie is $12 at the profit maximizing output level, then in the long run, a. More firms will enter the market b. Some firms will exit the market c. The equilibrium price per bottle will rise d. Average total costs will fall
A small bakery sells pies in a perfectly competitive market. If pies sell for $13/pie and the average total cost per pie is $12 at the profit maximizing output level, then in the long run, a. More firms will enter the market b. Some firms will exit the market c. The equilibrium price per bottle will rise d. Average total costs will fall
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Perefect Competition
Section: Chapter Questions
Problem 9SQP
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A small bakery sells pies in a
a. More firms will enter the market
b. Some firms will exit the market
c. The equilibrium price per bottle will rise
d. Average total costs will fall
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