Multiple Choice
Refer to the following figure:
The graph on the left shows long-run average and marginal cost for a typical firm in a perfectly competitive industry. The graph on the right shows demand and long-run supply for an increasing-cost industry.
-If this were a constant-cost industry, what would be the price when the industry gets to long-run competitive equilibrium?
A) between $35 and $20
B) $35
C) $20
D) below $20
E) above $35
Correct Answer:

Verified
Correct Answer:
Verified
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