Multiple Choice
Suppose that the perfectly competitive market for granola bars is made up of identical firms with long-run total cost functions given by TC(Q) = 8Q3 - 40Q2 + 200Q. Assume that these cost functions are independent of the number of firms in the market and that firms may enter or exit the market freely. Market demand is QD = 8,000 - 3.5P, where price is in cents. The long-run equilibrium quantity is ____ for the industry.
A) 8,000
B) 7,675
C) 7,475
D) 7,200
Correct Answer:
Verified
Correct Answer:
Verified
Q80: Pitch (a sticky black substance made from
Q81: Suppose that demand increases. If the total
Q82: (Figure: Price and Quantity of Output I)
Q83: (Figure: Price and Quantity IV) Which of
Q84: (Figure: Profit-Maximizing Output Level I) What is
Q86: (Figure: Price and Quantity I) The graph
Q87: (Figure: Firm I) At the profit maximizing
Q88: Suppose that each firm in a perfectly
Q89: Suppose that the market for gourmet deli
Q90: Suppose that each firm in a perfectly