msqueen5453 msqueen5453

25-11-2022
Business

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Suppose the market for haircuts is competitive and the price of a haircut is $18. If the typical firm in this market has an average total cost of $16, an average variable cost of $12, and a marginal cost of $18 when it sells 34 haircuts per day, which of the following would you expect?
a.New firms will enter this market.
b.Firms will exit this market.
c.No firms will enter or exit this market.
d.Firms in the market will shut down in the short run.

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