Multiple Choice
The long-run supply curve for a product is horizontal with ATC = 200.Market demand is defined as P = 1,000 - 4Q.The market is competitive and is in long-run equilibrium with 50 firms in the industry.If demand increases to P = 1,240 - 4Q,how many firms will be in the industry at the new long-run equilibrium?
A) 45.
B) 55.
C) 65.
D) 75.
E) 85.
Correct Answer:
Verified
Correct Answer:
Verified
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