The Long-Run Supply Curve for a Product Is Horizontal with ATC

Multiple Choice

The long-run supply curve for a product is horizontal with ATC = 200.Market demand is defined as P = 1,000 - 5Q.The market is competitive and is in long-run equilibrium with 40 firms in the industry.If a $50 tax is imposed on sellers,how many firms will be in the industry at the new long-run equilibrium?

A) 44.
B) 37.
C) 32.
D) 29.
E) 28.