Suppose each business in a perfectly competitive industry has fixed costs of $12,000 and an average variable cost of $12 when each producing 1000 units and at minimum average cost. What is the break-even price in this perfectly competitive industry?

Suppose each business in a perfectly competitive industry has fixed costs of $12,000 and an average variable cost of $12 when each producing 1000 units and at minimum average cost. What is the break-even price in this perfectly competitive industry?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 9P

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Question

Suppose each business in a perfectly competitive industry has
fixed costs of $12,000 and an average variable cost of $12
when each producing 1000 units and at minimum average cost.
What is the break-even price in this perfectly competitive
industry?

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