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The planet Arrakis produces spice mélange which makes the universe happy, very happy. There are a...

The planet Arrakis produces spice mélange which makes the universe happy, very happy. There are a large number of spice producers that compete for contracts to supply spice. If thee is truly competition in this industry, then price will

Be driven to the minimum point of the average cost curve.

Be driven to the minimum point of the average variable cost curve.

Be driven to the minimum point of the marginal cost curve.

Be driven to the minimum point of the total cost curve.
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Answer #2

Question-The planet Arrakis produces spice mélange which makes the universe happy, very happy. There are a large number of spice producers that compete for contracts to supply spice. If thee is truly competition in this industry, then price will?

Answer - The correct answer is Option number 3,that is:

"Be driven to the minimum point of the marginal cost curve."

As because in a true Competition a firm's supply curve is same as mc curve on prices above minimum average variable cost.

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