Phil Sells Duck Calls in a Perfectly Competitive Market

Multiple Choice

Phil sells duck calls in a perfectly competitive market. If duck calls sell for $10 each and average total cost per unit is $11 at the profit-maximizing output level, then in the long run

A) more firms will enter the market.
B) some firms will exit from the market.
C) the equilibrium price per duck call will fall.
D) average total costs will fall.