-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the lowest price at which a firm could stay in business in the long run is ________ per unit and the quantity demanded in the market at that price is ________ units per hour.
A) $20; 4,000
B) $10; 8,000
C) $10; 4,000
D) $20; 2,000
E) $20; 8,000

Question

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the lowest price at which a firm could stay in business in the long run is ________ per unit and the quantity demanded in the market at that price is ________ units per hour.
A) $20; 4,000 
B) $10; 8,000 
C) $10; 4,000 
D) $20; 2,000 
E) $20; 8,000

Quizplus · Accepted Answer

The lowest price at which a firm could stay in business in the long run is where the ATC curve is at its minimum, which corresponds to the lowest point on the ATC curve. This is because, in the long run, firms need to cover all their costs, including both variable and fixed costs, to stay in business. The quantity demanded at that price is determined by where this lowest point on the ATC curve intersects with the market demand curve.

-The Figure Above Shows the Market Demand Curve and the ATC