Suppose That for Each Firm in the Competitive Market for Potatoes,long-Run

Multiple Choice

Suppose that for each firm in the competitive market for potatoes,long-run average cost is minimized at 20¢ per pound when 500 pounds are grown.If the long-run supply curve is horizontal,then

A) some firms will enjoy long-run profits because they operate at minimum average cost.
B) the long-run price will be 20¢ per pound.
C) each consumer will purchase $100 worth of potatoes.
D) the long-run price will be set just above 20¢ per pound.