The current price of hotdogs is $2. Given the market is perfectly competitive, what will happen to the price of hotdogs in this market in the long run?

In a perfectly competitive market, if the price of hot dogs is above the marginal cost, it indicates that firms are making a profit. This will attract new firms to enter the market, increasing the supply of hot dogs. As supply increases, the price will be driven down. This process will continue until the price equals the marginal cost. In this case, the price will fall from $2 to$1.50 in the long run, assuming the marginal cost of $1.50 remains constant. This is because in the long run, in a perfectly competitive market, firms only make normal profits (zero economic profit) and price equals marginal cost.