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

question 19

Multiple Choice

The long-run supply curve for a product is horizontal with ATC = 400.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) 30.
• B) 40.
• C) 50.
• D) 60.
• E) 70.

Differentiate between absolute and comparative advantages in real-world scenarios.

Understand the concept of comparative advantage and how it determines production specialization between countries or individuals.

Identify the relationship between opportunity costs and comparative advantage.

Distinguish between absolute and comparative advantage.

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Definitions:

Population Standard Deviation

Population Standard Deviation is a measure of the dispersion or spread of all the values in a given population, indicating how much the individual values in the population differ from the population mean.

Sample Size

The number of observations or data points collected in a sample, which impacts the precision of statistical results.

Standard Error

A measure of the accuracy of a sample mean by describing the dispersion of sample means around the population mean.

Population Standard Deviation

A measure of the amount of variation or dispersion of a set of values in an entire population.