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-(Figure: Game-Day Shirts)Use Figure: Game-Day Shirts.Rick is one of the 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 nine vendors.If the industry is in long-run equilibrium,how many shirts will each vendor sell?

Question

Use the following to answer questions : 
-(Figure: Game-Day Shirts)Use Figure: Game-Day Shirts.Rick is one of the 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 nine vendors.If the industry is in long-run equilibrium,how many shirts will each vendor sell?

Quizplus · Accepted Answer

In long-run equilibrium, each firm in a perfectly competitive market will produce at the point where marginal cost equals price. The graph shows that the market price is $20, and Rick's marginal cost curve intersects the price line at 22 units of output. Therefore, Rick will sell 22 shirts.

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