Suppose in the Automobile Industry with Free Entry and Exit,the

Multiple Choice

Suppose in the automobile industry with free entry and exit,the marginal cost is constant at $5,000,two identical manufacturers are currently producing 1,000 cars each and earning zero economic profit.If the equilibrium price is $20,000,then what is the fixed cost for each manufacturer?

A) $20,000,000
B) $15,000,000
C) $5,000,000
D) $10,000,000