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.

---

Definitions:

Director

An individual elected by shareholders or appointed to govern and oversee the management of an organization or corporation's affairs.

Corporation

A legal entity that is separate from its owners, with its own rights, privileges, and liabilities distinct from those of its members.

Director's Duties

Obligations that directors are expected to fulfill, including acting in the company's best interests and with due care.

Corporation

A legal entity recognized by law, separate from its owners, with the ability to own assets, incur liabilities, and conduct business.