Suppose the technology of production is such that the typical firm's minimum efficient scale is 1400 units per week at an average long- run cost of $9 per unit.If the total quantity demanded in this market at a price of $9 per unit is 22 million units per week,the likely result will be

Question

Quizplus · Accepted Answer

The total market demand is 22 million units, and the minimum efficient scale for a firm is 1400 units. This means many firms can operate efficiently in the market, leading to a competitive industry.

Suppose the Technology of Production Is Such That the Typical