-Refer to Figure 11.1.If Trollio's T-shirts is in long-run equilibrium it is producing ________ silk-screened T-shirts and selling each T-shirt at a price of ________.

Question

Quizplus · Accepted Answer

In long-run equilibrium, a firm produces at the point where marginal cost equals marginal revenue, which is also where average total cost is minimized. This typically occurs at the quantity where the firm is producing at its efficient scale. The price is determined by the market, which is equal to the average total cost at this quantity.