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

question 63

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 much will consumers spend,in total,on potatoes?

• A) $0
• B) $500
• C) $10,000
• D) $50,000

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Definitions:

Modernization Theory

A view of globalization in which global development is a worldwide process affecting nearly all societies that have been touched by technological change.

Max Weber

A German sociologist, philosopher, and political economist known for his theory on the Protestant ethic and his ideas on bureaucracy.

World Systems Theory

A multidisciplinary, macro-scale approach to world history and social change that suggests there is a world economic system in which some countries benefit while others are exploited.

Dependency Theory

The global theory maintaining that industrialized nations hold less-industrialized nations in a dependent relationship that benefits the industrialized nations at the expense of the less-industrialized ones.