Good Z Is Produced and Sold in a Competitive Industry,and

Multiple Choice

Good Z is produced and sold in a competitive industry,and long-run industry supply is characterized by constant costs.The figure below shows a typical long-run average cost curve (LAC) for each of the firms producing good Z.LAC reaches its minimum unit cost of $12 and 1,000 units of output (point M) .Suppose the demand for good Z is Q_d = 52,000 - 1,000P. In long-run competitive equilibrium,______ firms will each produce _______ units of good Z.

A) 40; 1,000
B) 50; 1,000
C) 50; 1,500
D) 50; 2,000
E) none of the above