A Perfectly Competitive Industry Consists of Many Identical Firms, Each

question 112

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 total quantity purchase by consumers is ____.

• A) 2,000
• B) 1,800
• C) 1,500
• D) 1,200

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Definitions:

Kanban Size

The quantity of work or materials specified by a Kanban card, used in a pull system to control inventory and workflow.

Setup Cost

The expenses incurred to prepare equipment or processes for manufacturing an order or a batch of goods, including costs for adjusting machines, cleaning, and changing tooling.

Safety Stock

Extra inventory kept on hand to protect against stockouts caused by unpredictable demand or supply delays.