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A Perfectly Competitive Industry Consists of Many Identical Firms, Each

question 135

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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. In long-run equilibrium, the market price is $____.


Definitions:

Net Income

The amount of earnings remaining after all operational, interest, and tax expenses have been deducted from total revenue, reflecting the financial health of a company.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, reflecting the portion of sales that helps cover fixed costs and generate profit.

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, such as lease payments and salaries of permanent staff.

Net Income

The profit remaining after all expenses, taxes, and costs have been subtracted from total revenue.

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