Demand and cost conditions facing Trollios Tshirts MC ATC 13

Demand and cost conditions facing Trollio\'s T-shirts MC ATC 13 10- 10 MR 0 Number of silk-screened T-shirts per day 20 50 60 q Refer to the figure. If Trollio\'s T-shirts is in long-run equilibrium, it is charging a selling price of and has an average total cost of Selected Answer: c. $10; $16 A S16; S10 B. S10; S10 c. $10:$16 D, $16; S16 Answers

Solution

In long run equilibrium firms earn zero economic profit hence O=ATC.

From the above graph we can see at a price of $16

Price = ATC

Hence option D is correct.

In advertising as we know huge sum money has to be spent on order to create artificial demand and differentiating our product from others. Hence option D is correct.