Good W Is Produced in a Competitive Industry with Increasing

Multiple Choice

Good W is produced in a competitive industry with increasing costs of production.The figure below shows how a typical firm's long-run average cost curve shifts upward as industry output of good W expands.With 50 firms in the industry,each firm faces an identical long-run average cost curve given by LAC.With 80 firms in the industry,each firm faces an identical long-run average cost curve given by LAC'.And with 120 firms in the industry,each firm faces an identical long-run average cost curve given by LAC''. When there are 50 firms in the industry in long-run competitive equilibrium,the long-run marginal cost (LMC) for each one of the firms producing good W is $_______.

A) $6
B) $10
C) $16
D) cannot be determined from the information given