Suppose you master the art of growing herbs in your garden and sell them for a profit at the local farmer's market. Your neighbor sees your profitable business and decides to do the same. However, with less experience, your neighbor faces a much higher marginal cost curve.Assume the market for herbs operates under perfect competition.How is it possible for both you and your neighbor to sell herbs at the same price?
a)It is not possible. Since the neighbor has a higher marginal cost curve, the neighbor has to sell the herbs at a higher price.
b)The neighbor has more friends in the area and so has more customers.
c)Each seller produces the herbs until marginal cost equals the market price.
d)The neighbor has to cut resources to sell the herbs at the same price.