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:

Industry

A sector of the economy that is made up of manufacturing, production, or provision of services within a specific domain of activity or expertise.

Marginal Revenue

The supplementary income received from the sale of an additional unit of a product or service.

Price

The money value projected, needed, or surrendered in purchase of something.