Suppose That for Each Firm in the Competitive Market for Potatoes,long-Run

question 13

Multiple Choice

Suppose that for each firm in the competitive market for potatoes,long-run average cost is minimized at 20¢ per pound when 500 pounds are grown.The demand for potatoes is Q = 10,000/p.If the long-run supply curve is horizontal,then how many pounds of potatoes will be consumed in total?

• A)0
• B)500
• C)10,000
• D)50,000

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Definitions:

Command Economy

An economic system where the government, rather than the free market, determines what goods should be produced, how much should be produced, and the price at which goods are offered for sale.

Public Interest

The welfare or well-being of the general public, often considered a guiding principle for governmental policy or action.

Capital Suppliers

Entities or individuals that provide funds or resources for businesses to invest in production, expansion, or development activities.

Payments

Transactions or transfers of money in exchange for goods or services, or to fulfill a legal obligation.