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14 November, 00:36

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

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  1. 14 November, 00:46
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    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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