The Figure Given Below Represents a Perfectly Competitive Market in Long-Run

question 62

Multiple Choice

The figure given below represents a perfectly competitive market in long-run equilibrium.LRS represents the long-run supply curve of this market with demand (D) and price $50.When two large firms merge, output declines to 400 units and per unit production cost drops to $30.


-Refer to Figure.What is the net benefit of the merger?

• A)$8,000
• B)$2,400
• C)$7,400
• D)$600

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Definitions:

Intrauterine Device

A small contraceptive device typically made of plastic and copper that is inserted into the uterus to prevent pregnancy.

Effectiveness Rate

A measure of the success of a treatment, medication, or intervention in achieving its intended result under typical everyday conditions.

Cervical Os

The opening of the cervix that leads from the vagina to the uterus.

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A state that diverges from the norm in structure, function, or psychology, often leading to disease or health issues.