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 a constant-cost industry, what would be the price when the industry gets to long-run competitive equilibrium?

A. between $35 and $20
B. $20
C. above $35
D. $35
E. below $20


Answer: B

Economics

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Figure 7-5


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a.
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