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:

Optic Nerve

A cranial nerve that transmits visual information from the retina to the brain.

Blind Spot

An area on the retina without receptors that respond to light, where the optic nerve exits the eye, creating a spot where no image is detected.

Wavelength

The distance between two consecutive points of similar phase in a wave, such as between two crests or troughs in a sound or light wave.

Colour

A characteristic of visual perception described through categories such as hue, saturation, and brightness, resulting from the way an object interacts with light.