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

question 14

Multiple Choice

Suppose that for each firm in the competitive market for potatoes,long-run average cost is minimized at $0.20 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 firms will this industry sustain in the long run?

• A) 0
• B) 100
• C) 50,000
• D) There is not enough information to answer.

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Definitions:

Bowlby and Ainsworth

Refers to John Bowlby and Mary Ainsworth, psychologists known for their work in developing attachment theory.

Birth Order

The theory that the order in which a child is born into a family can influence their personality and psychological development.

Safeguarding Tendencies

Psychological mechanisms that individuals employ to protect their self-esteem or ego from threats and anxiety.

Neurotic Trends

Patterns of thought, emotion, and behavior that are maladaptive and often stem from unresolved psychological conflicts.