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-(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 price of a shirt is $11,in the long run:

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Use the following to answer question: 
-(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 price of a shirt is $11,in the long run:

Quizplus · Accepted Answer

In a perfectly competitive market, if all firms have identical costs, then in the long run the industry will be in equilibrium where price equals average cost. Therefore, there will be no incentive for firms to enter or exit the industry. The price of $11 in this scenario is assumed to be the equilibrium price.

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