22 Jul HOW CAN YOU TELL WHAT THE BATHING SUIT MARKET IN SANTA BARBARA IS NOT IN LONG-RUN EQUILIBRIUM?
In the beach city of Santa Barbara California there are seven bathing suit stores each with the s Show more In the beach city of Santa Barbara California there are seven bathing suit stores each with the same schedule of costs and each facing an identical demand curve. Swim N Style is a typical store: suits sold (per hour) price total cost 1$68$70 2 6680 36485 46290 560100 658115 756136 854164 952200 10-50245 a) Calculate total revenue marginal revenue marginal cost and average cost at each level of sales fo the store. b) If Swim N Style is a profit maximizer what number of suits will it sell per hour? What will its price and profit be? c) How can you tell what the bathing suit market in Santa Barbara is not in long-run equilibrium? What will happen because it is out of quilibrium? Show less
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