The Following Graphs Depict a Perfectly Competitive Firm and Its

question 91

Multiple Choice

The following graphs depict a perfectly competitive firm and its market.
Assume that all firms in this industry have identical cost functions.
The long run equilibrium quantity in this industry is

• A) 300.
• B) 500.
• C) 700.
• D) more than 700.

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Definitions:

Corner Points

In linear programming, points at the corner of the feasible region that are potential solutions to the optimization problem.

Optimal Solution

The best possible outcome or answer to a problem, maximizing or minimizing the objective function within given constraints.

Constraints

Limitations or restrictions that affect the decision-making process or the execution of plans.

Valid Constraints

Restrictions or conditions that are applicable and necessary in mathematical problems or models.