Figure 7-9
-Refer to Figure 7-9.If this is a constant-cost industry,what is the market price in the long-run equilibrium?
A) $5
B) $14
C) $15
D) $20

Question

Figure 7-9 
-Refer to Figure 7-9.If this is a constant-cost industry,what is the market price in the long-run equilibrium?
A) $5 
B) $14 
C) $15 
D) $20

Quizplus · Accepted Answer

In the long-run equilibrium, firms will produce where P = MC, which is at a quantity of 80 and a price of $14. At this price, each firm earns zero economic profit and the market is in long-run equilibrium. Thus, the market price in the long-run equilibrium is $14.

Figure 7-9 -Refer to Figure 7-9.If This Is a Constant-Cost Industry,what Is