Asked by
Rafael Morfin
on Oct 27, 2024
Verified
(Figure: Game-Day Shirts) Use Figure: Game-Day Shirts.Rick is one of 10 vendors who sell game-day T-shirts at football games in a perfectly competitive market.His costs are identical to the costs of the other 9 vendors.If the industry is in long-run equilibrium,the price of each shirt will be:
A) $6.
B) $9.
C) $11.
D) $14.
Long-run Equilibrium
A state in which all factors of production can vary, and economic agents have fully adjusted to any changes, leaving no incentive for further adjustments.
Perfectly Competitive Market
An economic market setup in which there are numerous buyers and sellers dealing in identical products with no obstacles for entering or leaving the market.
- Recognize the conditions essential for the maintenance of long-term equilibrium in a perfectly competitive framework.
- Explain the features of an ideal competitive market that result in efficient outcomes.
Verified Answer
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Learning Objectives
- Recognize the conditions essential for the maintenance of long-term equilibrium in a perfectly competitive framework.
- Explain the features of an ideal competitive market that result in efficient outcomes.