Suppose That the Perfectly Competitive Market for Granola Bars Is

question 85

Multiple Choice

Suppose that the perfectly competitive market for granola bars is made up of identical firms with long-run total cost functions given by TC(Q) = 8Q³ - 40Q² + 200Q. Assume that these cost functions are independent of the number of firms in the market and that firms may enter or exit the market freely. Market demand is Q^D = 8,000 - 3.5P, where price is in cents. The long-run equilibrium quantity is ____ for the industry.

• A) 8,000
• B) 7,675
• C) 7,475
• D) 7,200

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Definitions:

Soil Fungi

Fungi that live in the soil, playing critical roles in nutrient cycling, organic matter decomposition, and as symbionts or pathogens of plants.

Hyphae

The long, branching filamentous structures of fungi, which collectively form the mycelium and are the primary mode of vegetative growth.

Hyphae

The long, thread-like structures that make up the body of fungi and some prokaryotic organisms.

Mycelia

A complex network of thread-like structures that form the vegetative part of fungi.