Asked by
Carson Skahan
on Dec 08, 2024
Verified
Refer to Figure 15.6. If Trollioʹs T-shirts is in long-run equilibrium, it is charging a selling price of ________ and has an average total cost of ________.
A) $10; $10
B) $16; $10
C) $16; $16
D) $10; $16
Long-Run Equilibrium
A state in which all firms in a given industry are making zero economic profit, leading to an optimal allocation of resources given current technology and factor prices.
Selling Price
The amount of money for which a product or service is sold to consumers.
Average Total Cost
The total cost per unit of output, calculated by dividing the total cost by the quantity of output produced.
- Compare and contrast short-run and long-run equilibria in monopolistically competitive market structures.
- Discern the criteria for long-run stability in monopolistically competitive environments, emphasizing the connections among price, average total costs, and volume of output.
Verified Answer
KP
Learning Objectives
- Compare and contrast short-run and long-run equilibria in monopolistically competitive market structures.
- Discern the criteria for long-run stability in monopolistically competitive environments, emphasizing the connections among price, average total costs, and volume of output.