Suppose the market demand for milk is Q^d =150-5P. Additionally, suppose that a dairy's variable costs are VC = 2Q² (where Q is the number of gallons of milk produced each day), its marginal cost is MC =4Q and there is an avoidable fixed cost of $50 per day. In the long run there is free entry into the market. Suppose the demand for milk doubles. What is the new long-run equilibrium price? A) $20 B) $40 C) $24 D) $2

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The Answer of Suppose the market demand for milk is Q^d =150-5P. Additionally, suppose that a dairy's variable costs are VC = 2Q² (where Q is the number of gallons of milk produced each day), its marginal cost is MC =4Q and there is an avoidable fixed cost of $50 per day. In the long run there is free entry into the market. Suppose the demand for milk doubles. What is the new long-run equilibrium price? A) $20 B) $40 C) $24 D) $2

Suppose the Market Demand for Milk Is Qd =150-5P

Suppose the Market Demand for Milk Is Q^d =150-5P