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Question 227

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Use the following to answer questions:
Figure: Game-Day Shirts Use the following to answer questions: Figure: Game-Day Shirts   -(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 $14, in the long run: A)  firms will enter the industry. B)  firms will exit the industry. C)  the industry is in equilibrium. D)  the industry has minimized average total cost.
-(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 $14, in the long run:


A) firms will enter the industry.
B) firms will exit the industry.
C) the industry is in equilibrium.
D) the industry has minimized average total cost.

Correct Answer:

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