Suppose the market demand for milk is Additionally,suppose that a dairy's variable costs are (where Q is the number of gallons of milk produced each day),its marginal cost is and there is an avoidable fixed cost of $50 per day.In the long run there is free entry into the market.What is the market equilibrium price?
A) $50 per gallon
B) $20 per gallon
C) $100 per gallon
D) $25 per gallon

Question

Suppose the market demand for milk is  Additionally,suppose that a dairy's variable costs are  (where Q is the number of gallons of milk produced each day),its marginal cost is  and there is an avoidable fixed cost of $50 per day.In the long run there is free entry into the market.What is the market equilibrium price?
A) $50 per gallon 
B) $20 per gallon 
C) $100 per gallon 
D) $25 per gallon

Quizplus · Accepted Answer

The Answer of Suppose the market demand for milk is  Additionally,suppose that a dairy's variable costs are  (where Q is the number of gallons of milk produced each day),its marginal cost is  and there is an avoidable fixed cost of $50 per day.In the long run there is free entry into the market.What is the market equilibrium price?
A) $50 per gallon 
B) $20 per gallon 
C) $100 per gallon 
D) $25 per gallon

Suppose the Market Demand for Milk Is Additionally,suppose That