Timmy's Trophies operates in a perfectly competitive market.If trophies sell for $20 each and average total cost per trophy is $15 at the profit-maximizing output level,then in the long run

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In a perfectly competitive market, firms will continue to enter the market as long as they can make a profit. Timmy's Trophies is currently making a profit at the profit-maximizing output level, which suggests that there is room for additional firms to enter the market and compete for customers. As more firms enter the market, the supply of trophies will increase, which will drive down the equilibrium price per trophy and potentially drive some firms out of the market. Ultimately, the market will reach a long-run equilibrium where firms earn zero economic profit and the price per trophy is equal to the minimum average total cost.

Timmy's Trophies Operates in a Perfectly Competitive Market