The Following Graph (A)represents the Cost Curves for a Representative

question 72

Multiple Choice

The following graph (A) represents the cost curves for a representative firm in a perfectly competitive market.The market demand is shown in graph (B) :

-Refer to the above graph to answer this question.Suppose that there are a total of 100 firms in this industry all with identical costs.What will be the equilibrium market price and quantity?

• A)$40 and 2,500 units.
• B)$40 and 3,500 units.
• C)$50 and 3,000 units.
• D)$60 and 2,500 units.
• E)$60 and 3,500 units.

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