Suppose That the Current Equilibrium Price of Silver Is $20

question 51

Multiple Choice

Suppose that the current equilibrium price of silver is $20 per ounce. If silver is produced under conditions of perfect competition and the industry is in long-run equilibrium, the average total cost of producing silver:

• A) is less than $20 per ounce.
• B) is $20 per ounce.
• C) exceeds $20 per ounce.
• D) is indeterminate.