Suppose That for Each Firm in the Competitive Market for Potatoes,long-Run

question 63

Multiple Choice

Suppose that for each firm in the competitive market for potatoes,long-run average cost is minimized at $0.20 per pound when 500 pounds are grown.The demand for potatoes is Q = 10,000/p.If the long-run supply curve is horizontal,then how much will consumers spend,in total,on potatoes?

• A) $0
• B) $500
• C) $10,000
• D) $50,000

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Definitions:

Market Development

A strategic business growth technique that involves selling existing products in new markets or new geographical areas.

Existing Products

Goods or services that are currently available to consumers from a business.

Value Delivery Network

The collaboration between a company, its suppliers, and its distributors to produce and deliver products to the final customer efficiently.

Socio-cultural Factors

Elements that influence one's lifestyle and preferences, including family, education, religion, and social class, which marketers use to segment and target audiences.