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 economic profit earned by each firm is $_________.

A) $0
B) $5,000
C) $50,000
D) $500,000
E) none of the above