Multiple Choice
There are 100 identical demanders of product y, and the demand function for each individual is y = 10 - p. The production function for any firm is y = min(z1,z2) . If this is a constant cost industry, and if the prices of z1 and z2 are each $1, then:
A) long- run equilibrium price is $1.
B) quantity demanded in long- run equilibrium is 998/100.
C) long- run equilibrium price is $3.
D) quantity demanded in long- run equilibrium is 800.
Correct Answer:
Verified
Correct Answer:
Verified
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