Solved

Industry Demand Is Given by P = 200 - 0

Question 16

Multiple Choice

Industry demand is given by P = 200 - 0.4Q,where P = price and Q = quantity produced.The long-run industry costs are: average cost [AC] = marginal cost [MC] = $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 $120.
B) If the market is perfectly competitive,300 units of the good will be produced.
C) If the market is perfectly competitive,the price of the good will be $100.
D) Under both monopoly and perfect competition,average revenue = $80.
E) If the market is a pure monopoly,200 units of the good will be produced.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents