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.When the industry is in long-run equilibrium,the price of each shirt will be _____,and the total quantity supplied in the market will be _____.

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.When the industry is in long-run equilibrium,the price of each shirt will be _____,and the total quantity supplied in the market will be _____.

Quizplus · Accepted Answer

In perfect competition, all firms sell at the same price, and the price is equal to the marginal cost of production in the long run. Since Rick's costs are identical to the costs of the other nine vendors, the price will be $11 in long-run equilibrium. The total quantity supplied in the market will be the quantity at which each firm earns zero economic profit, which occurs where marginal cost equals price. At a price of $11, each firm will supply 22 units (for a total of 220 units), and the industry will be in long-run equilibrium.

Use the Following to Answer Questions