Suppose That the Marginal Cost of Producing Cottonseed Meal Is

question 22

Multiple Choice

Suppose that the marginal cost of producing cottonseed meal is $170 per ton. If the cottonseed oil industry is perfectly competitive and in long-run equilibrium, the average total cost of producing cottonseed oil:

• A) is less than $170 per ton.
• B) is equal to $170 per ton.
• C) is greater than $170 per ton.
• D) cannot be determined.