The figure shows the demand curve for Gap jackets (D), and Gap's marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC).
-In the figure above, if the market for jackets were perfectly competitive, in long-run equilibrium, each firm would sell ________ jackets per day at ________ per jacket.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms will produce at the point where marginal cost equals price. In this case, the marginal cost curve intersects the demand curve at a quantity of 132 jackets per day and a price of $122 per jacket.

The Figure Shows the Demand Curve for Gap Jackets (D)