Multiple Choice
The long-run supply curve for a product is horizontal with ATC = 400.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) 30.
B) 40.
C) 50.
D) 60.
E) 70.
Correct Answer:
Verified
Correct Answer:
Verified
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