Timmy's Trophies Operates in a Perfectly Competitive Market

question 317

Multiple Choice

Timmy's Trophies operates in a perfectly competitive market.If trophies sell for $20 each and average total cost per trophy is $15 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 trophy will rise.
• D) average total costs will fall.

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