Below,the Graph on the Left Shows Long-Run Average and Marginal

question 66

Multiple Choice

Below,the graph on the left shows long-run average and marginal cost for a typical firm in a perfectly competitive industry.The graph on the right shows demand and long-run supply for an increasing-cost industry. If this were a constant-cost industry,what would be the price when the industry gets to long-run competitive equilibrium?

• A)between $35 and $20
• B)$35
• C)$20
• D)below $20
• E)above $35

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Definitions:

Best Fit Explanation

A theory or hypothesis that most accurately accounts for the evidence or data among competing options.

Own Behavior

An individual's actions or conduct as perceived or governed by their own conscious intentions or habits.

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