In the short run, there are 500 identical firms in a competitive market. The firms do not use any resources that are available in limited quantities, and each of them has the following cost structure: Which of the following is a point on the long-run supply curve?
A)P=$10, Q=500.
B)P=$6, Q=1,000.
C)P=$5, Q=500.
D)P=$5, Q=1,500.

Question

In the short run, there are 500 identical firms in a competitive market. The firms do not use any resources that are available in limited quantities, and each of them has the following cost structure:  Which of the following is a point on the long-run supply curve?
A)P=$10, Q=500. 
B)P=$6, Q=1,000. 
C)P=$5, Q=500. 
D)P=$5, Q=1,500.

Quizplus · Accepted Answer

The Answer of In the short run, there are 500 identical firms in a competitive market. The firms do not use any resources that are available in limited quantities, and each of them has the following cost structure:  Which of the following is a point on the long-run supply curve?
A)P=$10, Q=500. 
B)P=$6, Q=1,000. 
C)P=$5, Q=500. 
D)P=$5, Q=1,500.

In the Short Run, There Are 500 Identical Firms in a Competitive