Assume That All Firms in This Industry Have Identical Cost

Multiple Choice

Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive. In the long run, the equilibrium price will be _____ per gallon, and each firm's profit-maximizing quantity will be ______ gallons per week.

A) $20; 4 hundred
B) $15; 6 thousand
C) $15; 3 hundred
D) $20; 4 thousand