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:
Verified
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