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.Suppose the demand for milk doubles.What is the new long-run equilibrium price?
A) $20
B) $40
C) $24
D) $2

Question

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.Suppose the demand for milk doubles.What is the new long-run equilibrium price?
A) $20 
B) $40 
C) $24 
D) $2

Quizplus · Accepted Answer

The Answer of 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.Suppose the demand for milk doubles.What is the new long-run equilibrium price?
A) $20 
B) $40 
C) $24 
D) $2

The Market Demand for Milk Is Additionally,suppose That a Dairy's