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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,the price of each shirt will be:

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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 industry is in long-run equilibrium,the price of each shirt will be:

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In a perfectly competitive market, in the long run, firms will earn zero economic profit. This means that price equals the minimum average total cost (ATC) for each firm. Since all 10 vendors have identical costs, the market price will equal each individual firm's ATC. Therefore, the price of each shirt will be $11, which is the point at which the market demand curve intersects with each firm's ATC.

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