Good W is produced in a competitive industry with increasing costs of production.The figure below shows how a typical firm's long-run average cost curve shifts upward as industry output of good W expands.With 50 firms in the industry,each firm faces an identical long-run average cost curve given by LAC.With 80 firms in the industry,each firm faces an identical long-run average cost curve given by LAC'.And with 120 firms in the industry,each firm faces an identical long-run average cost curve given by LAC''. When there are 80 firms in the industry in long-run competitive equilibrium,the long-run average cost (LAC)of producing good W is $_________,and each firm earns $__________ of economic profit.

Question

Good W is produced in a competitive industry with increasing costs of production.The figure below shows how a typical firm's long-run average cost curve shifts upward as industry output of good W expands.With 50 firms in the industry,each firm faces an identical long-run average cost curve given by LAC.With 80 firms in the industry,each firm faces an identical long-run average cost curve given by LAC'.And with 120 firms in the industry,each firm faces an identical long-run average cost curve given by LAC''.  When there are 80 firms in the industry in long-run competitive equilibrium,the long-run average cost (LAC)of producing good W is $_________,and each firm earns $__________ of economic profit.

Quizplus · Accepted Answer

The Answer of Good W is produced in a competitive industry with increasing costs of production.The figure below shows how a typical firm's long-run average cost curve shifts upward as industry output of good W expands.With 50 firms in the industry,each firm faces an identical long-run average cost curve given by LAC.With 80 firms in the industry,each firm faces an identical long-run average cost curve given by LAC'.And with 120 firms in the industry,each firm faces an identical long-run average cost curve given by LAC''.  When there are 80 firms in the industry in long-run competitive equilibrium,the long-run average cost (LAC)of producing good W is $_________,and each firm earns $__________ of economic profit.

Good W Is Produced in a Competitive Industry with Increasing