Phil Sells Duck Calls in a Perfectly Competitive Market

question 285

Multiple Choice

Phil sells duck calls in a perfectly competitive market. If duck calls sell for $10 each and average total cost per unit is $11 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 duck call will fall.
• D)average total costs will fall.

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Definitions:

Ethical Ideations

The process of forming and contemplating ideas, principles, or standards of right conduct.

Desirable

An attribute or quality that makes something preferred or pleasing to individuals or groups.

Optimal Solutions

The most favorable or desirable solutions among all feasible solutions in a problem-solving or decision-making process.

Ethical Dilemmas

Situations in which a person faces conflicting moral principles, making it challenging to decide the right course of action.