In a Perfectly Competitive Market with 2,000 Firms, Output Is

question 78

Multiple Choice

In a perfectly competitive market with 2,000 firms, output is zero at prices less than $10. At prices of $10 to $19.99, each firm will produce 100 units of output. At any price of $20 or more, each firm will produce 300 units of output. As this industry expands output, however, prices of the key inputs to production increase substantially. The total industry output at a market price of $33 is:

• A) between 200,000 and 800,000.
• B) 600,000 or less.
• C) greater than 600,000.
• D) 800,000.