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?

Question

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?
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Solution 1

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 unti Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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