Refer to the information provided in Figure 15.6 below to answer the question(s) that follow. Figure 15.6
-Refer to Figure 15.6. If Trollioʹs T-shirts is producing the quantity where MR = MC and selling each T-shirt at the price where D = ATC, then in the long run this firm should ________ the selling price and ________ quantity.

Question

Refer to the information provided in Figure 15.6 below to answer the question(s) that follow.  Figure 15.6
-Refer to Figure 15.6. If Trollioʹs T-shirts is producing the quantity where MR = MC and selling each T-shirt at the price where D = ATC, then in the long run this firm should ________ the selling price and ________ quantity.

Quizplus · Accepted Answer

In the long run, if a firm is producing where MR = MC and selling at a price where D = ATC, it is operating at the point of long-run equilibrium in a perfectly competitive market. This means the firm is covering all its costs, including a normal profit, and there is no incentive to change the price or quantity.

Refer to the Information Provided in Figure 15