In a Perfectly Competitive Market, Each Firm Has a Long-Run

question 108

Multiple Choice

In a perfectly competitive market, each firm has a long-run total cost given by LTC = 100Q - 10Q² + 1/3Q³ and long-run marginal cost curve given by LMC = 100 - 20Q + Q². What is the market's long-run equilibrium price?

• A) $8.50
• B) $33
• C) $70
• D) $25

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Definitions:

Soma

In biology, the body of an organism as distinct from its reproductive cells; in neuroscience, the cell body of a neuron.

Nucleus

The central and most important part of an object, movement, or group, forming the basis for its activity and growth.

Dendrites

Branch-like extensions of neurons that receive electrical messages from other nerve cells.

Efferent Nerves

Nerve fibers that carry signals away from the central nervous system towards the muscles to cause movement.