Suppose That the Long-Run Total Cost Curve for Each Firm

Multiple Choice

Suppose that the long-run total cost curve for each firm is given by TC = 1,000 + 100Q - 10Q² + Q³. Also, suppose there is free entry and exit. To find the quantity where ATC is minimized, solve the following equation for Q:

A) 100 - 20Q + 3Q² = 1,000 + 100Q - 10Q² + Q³.
B) 100 - 20Q + 3Q² = 100 - 10Q + Q².
C) 100 - 20Q + 3Q² = 1,000/Q + 100 - 10Q + Q².
D) 100 - 20Q + 3Q² = 1,000(Q + 100 - 10Q + Q²) .