Question

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 will continue making their current product since demand curves will adjust to equilibrate prices in both markets. B. firms currently making pizza will switch to making calzones. C. firms will increase their productivity to lower their marginal costs. D. firms currently making calzones will switch to making pizza. When firms switch from making pizza to making​ calzones, the price of pizza will ▼ decrease increase stay the same and the price of calzones will ▼ decrease increase stay the same .

Answer 1

B. firms currently making pizza will switch to making calzones

Step-by-step explanation: