A Perfectly Competitive Industry Consists of Many Identical Firms, Each

question 2

Multiple Choice

A perfectly competitive industry consists of many identical firms, each with a long-run average total cost of LATC = 800 - 10Q + 0.1Q² and long-run marginal cost of LMC = 800 - 20Q + 0.3Q². The industry's demand curve is Q^D = 40,000 - 70P. In long-run equilibrium, the number of firms in the industry is ____.

• A) 60
• B) 50
• C) 40
• D) 30

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