Below,the Graph on the Left Shows Long-Run Average and Marginal

question 90

Multiple Choice

Below,the graph on the left shows long-run average and marginal cost for a typical firm in a perfectly competitive industry.The graph on the right shows demand and long-run supply for an increasing-cost industry. If this were a constant-cost industry,what would be the price when the industry gets to long-run competitive equilibrium?

• A)between $35 and $20
• B)$35
• C)$20
• D)below $20
• E)above $35

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Definitions:

Phonemes

The smallest units of sound in a language that can differentiate meaning.

Morphemes

The smallest units in language grammar that possess meaning.

Increase

A rise in quantity, size, number, or degree.

Babbling

A stage in child language acquisition, during which an infant appears to be experimenting with uttering articulate sounds but does not yet produce any recognizable words.