The Long-Run Supply Curve for a Product Is Horizontal with ATC

question 8

Multiple Choice

The long-run supply curve for a product is horizontal with ATC = 200.Market demand is defined as P = 1,000 - 4Q.The market is competitive and is in long-run equilibrium with 50 firms in the industry.If demand increases to P = 1,240 - 4Q,how many firms will be in the industry at the new long-run equilibrium?

• A) 45.
• B) 55.
• C) 65.
• D) 75.
• E) 85.

---

Definitions:

Gabriel's Rebellion

An 1800 slave revolt in Richmond, Virginia, led by Gabriel Prosser, that aimed to gain freedom for African-American slaves but was suppressed before it could be fully executed.

Illiterate Field Hands

Agricultural workers, often slaves or laborers in later periods, who could not read or write, common on plantations and farms historically.

Negotiate

The process of discussing something with someone in order to reach an agreement or mutual understanding.

Plains of Chalmette

The site of the Battle of New Orleans in 1815, a significant American victory at the end of the War of 1812.