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$20 $18 ATC MC $16 $14 $ $12 Cost of Sweatpants $10 $8 AVC $6 $4 $2. $0 7 Cost Curves Sweatpants Firm 1 2 10 O 3 4 5 6 7 8 9The above graph contains the average total cost, marginal cost, and average variable cost for a small firm that produces swea

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Answer #1

Ans. $10

The long run equilibrium price of sweatpants in the market is $10. Inn a perfectly competitive market, there is zero economic profit in the long run. This occurs when the marginal cost intersects the average total cost curve at its minimum point. At this point, there is zero economic profit and each firm is producing at its profit maximizing level. This occurs at $10 price level.

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