Alice,Bud,and Celia Can Produce Rubber Bands in a Perfectly Competitive

question 60

Multiple Choice

Alice,Bud,and Celia can produce rubber bands in a perfectly competitive market.If they enter the market,the minimum average total cost for a bundle of rubber bands,for the three of them is $2,$3,and $4,respectively.If the market price is $2.10 per bundle,then

• A) all three of them will enter the market.
• B) only Alice will enter the market.
• C) Alice and Bud will enter the market.
• D) Bud and Celia will enter the market.
• E) Alice and Celia will enter the market.