Each Firm in a Perfectly Competitive Market Has Long Run

question 18

Multiple Choice

Each firm in a perfectly competitive market has long run average cost represented as AC(q) = 100q- 10+100/q. Long run marginal cost is MC=200q-10. The market demand is Q^d = 2150-5P. Find the long run equilibrium output per firm, q*, the long run equilibrium price, P*, and the number of firms in the industry, n*.

• A) q*=1; P*=190; n*=1200
• B) q*=2; P*=240; n*=1200
• C) q*=50; P*=15; n*=200
• D) q*=100; P*=9991; n*=500

---

Definitions:

Health Services

A broad range of medical or health-related services aimed at maintaining, enhancing, or managing the health of individuals.

Social Support

The assistance and comfort received from friends, family, and others, which can significantly impact an individual's mental and physical health.

Income

The money received, usually on a regular basis, for work or through investments.

Education

The process of receiving or giving systematic instruction, especially at a school or university.