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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 industry is in long-run equilibrium,how many shirts will each vendor sell?

Question

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 industry is in long-run equilibrium,how many shirts will each vendor sell?

Quizplus · Accepted Answer

In long-run equilibrium, each firm in a perfectly competitive market will produce at the point where marginal cost equals price. At this point, each firm will produce the same quantity of output, which is equal to the quantity demanded at the equilibrium price. In this case, the equilibrium price is $20 and the equilibrium quantity is 22 shirts.

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