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Assume there are two industries in our economy: the production of pizza and the production of calzones. Each of these products is produced in a similar way with similar ingredients and requires similar

asked Mar 23, 2020 77.5k views

Assume there are two industries in our economy: the production of pizza and the production of calzones. Each of these products is produced in a similar way with similar ingredients and requires similar skills. If the market price of pizza in this competitive market is below the ATC curve and the price of calzones is above the ATC curve, ____________. A. firms currently making pizza will switch to making calzones. B. firms will continue making their current product since demand curves will adjust to equilibrate prices in both markets. C. firms will increase their productivity to lower their marginal costs. D. firms currently making calzones will switch to making pizza.

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