constant-cost industry

Use the graph in the second column of page 257 under question 17 to answer the following. It shows the marginal cost and average total cost curves for the shoe store Zapateria, a perfectly competitive firm. a. How many pairs of shoes will Zapateria produce if the market price of shoes is $70 a pair? b. What is the total profit Zapateria will earn if the market price of shoes is $70 a pair? c. Should Zapateria expect more shoe stores to enter this market? Why or why not? d. What is the long-run equilibrium price in the shoe market assuming it is a constant-cost industry?

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