The following graphs depict a perfectly competitive firm and its market.
Assume that all firms in this industry have identical cost functions.
In the long run equilibrium in this market,
A)price will equal $5,and there will be 20 firms in the industry.
B)price will equal $5,and there will be 10 firms in the industry.
C)price will equal $8,and there will be 20 firms in the industry.
D)price will equal $5 and total output will equal 500 units,but there is not enough information to know how many firms there will be.

Question

The following graphs depict a perfectly competitive firm and its market.
Assume that all firms in this industry have identical cost functions. 
In the long run equilibrium in this market,
A)price will equal $5,and there will be 20 firms in the industry. 
B)price will equal $5,and there will be 10 firms in the industry. 
C)price will equal $8,and there will be 20 firms in the industry. 
D)price will equal $5 and total output will equal 500 units,but there is not enough information to know how many firms there will be.

Quizplus · Accepted Answer

The Answer of The following graphs depict a perfectly competitive firm and its market.
Assume that all firms in this industry have identical cost functions. 
In the long run equilibrium in this market,
A)price will equal $5,and there will be 20 firms in the industry. 
B)price will equal $5,and there will be 10 firms in the industry. 
C)price will equal $8,and there will be 20 firms in the industry. 
D)price will equal $5 and total output will equal 500 units,but there is not enough information to know how many firms there will be.

The Following Graphs Depict a Perfectly Competitive Firm and Its