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olasank [31]
3 years ago
13

Suppose that the current equilibrium price of silver is $34 per ounce. If silver is produced under conditions of perfect competi

tion and the industry is in long-run equilibrium, the average total cost of producing silver: a. is less than $34 per ounce. b. is $34 per ounce. c. is indeterminate. d. exceeds $34 per ounce.
Mathematics
1 answer:
Bond [772]3 years ago
6 0

Answer:

  b.  is $34 per ounce

Step-by-step explanation:

If the production cost were less, a competitor would drive the price down. If the production cost were more, the supplier would go out of business.

Since we're at equilibrium, the production cost must be equal to $34 per ounce.

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