Question

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. average total costs will fall. b. some firms will exit from the market. c. more firms will enter the market. d. the equilibrium price per duck call will fall.

Answer 1

B. Some firms will exit from the market.

Step-by-step explanation:

There are no barriers to entry into or exit out of the market.