Industry Demand Is Given by P = 200 -

Multiple Choice

Industry demand is given by P = 200 - .4Q. The long-run industry costs are such that: LAC = LMC = $80. Based on this information, which of the following is true?

A) If the market is a pure monopoly, the price of the good will be $140.
B) If the market is perfectly competitive, 300 units of the good will be supplied.
C) If the market is perfectly competitive, the price of the good will be $100.
D) If the market is a pure monopoly, 200 units of the good will be produced.
E) Answers if the market is a pure monopoly, the price of the good will be $140 and if the market is perfectly competitive, 300 units of the good will be supplied are both correct.