Use the following to answer questions : $$\begin{array}{l}
\text { Table: Cherry Farm }\
\begin{array} { c c }
\hline \begin{array} { l }
\text { Quantity of } \
\text { cherries } \
\text { (in pounds) }
\end{array} & \text { Total Cost } \
\hline 0 & \$ 2 \
1 & 7 \
2 & 11 \
3 & 13 \
4 & 16 \
5 & 21 \
6 & 28 \
7 & 38 \
\hline
\end{array}
\end{array}$$
-(Table: Cherry Farm)Use Table: Cherry Farm.Suppose all farms have identical cost curves,as shown in the table.How much will the industry produce in long-run equilibrium if there are 100 farms in the industry in the long run?

Question

Use the following to answer questions : $$\begin{array}{l}
\text { Table: Cherry Farm }\
\begin{array} { c c } 
\hline \begin{array} { l } 
\text { Quantity of } \
\text { cherries } \
\text { (in pounds) }
\end{array} & \text { Total Cost } \
\hline 0 & \$ 2 \
1 & 7 \
2 & 11 \
3 & 13 \
4 & 16 \
5 & 21 \
6 & 28 \
7 & 38 \
\hline
\end{array}
\end{array}$$
-(Table: Cherry Farm)Use Table: Cherry Farm.Suppose all farms have identical cost curves,as shown in the table.How much will the industry produce in long-run equilibrium if there are 100 farms in the industry in the long run?

Quizplus · Accepted Answer

In long-run equilibrium, firms produce at the minimum point of their average total cost curve. Here, the minimum average total cost occurs at 4 pounds, where the cost is $16. With 100 farms, the industry will produce 100 x 4 = 400 pounds.

Use the Following to Answer Questions -(Table: Cherry Farm)Use Table: Cherry Farm