There Are 100 Identical Demanders of Product Y, and the Demand

question 32

Multiple Choice

There are 100 identical demanders of product y, and the demand function for each individual is y = 10 - p. The production function for any firm is y = min(z₁,z₂) . If this is a constant cost industry, and if the prices of z₁ and z₂ are each $1, then:

• A)long- run equilibrium price is $1.
• B)quantity demanded in long- run equilibrium is 998/100.
• C)long- run equilibrium price is $3.
• D)quantity demanded in long- run equilibrium is 800.

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