Below, 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 an increasing cost industry, what would be the price when the industry gets to long-run competitive equilibrium?

A. $35
B. between $35 and $15
C. below $15
D. above $35
E. $15


Answer: B

Economics

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