-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the lowest price at which a firm could stay in business in the long run is ________ per unit and the quantity demanded in the market at that price is ________ units per hour.
A) $15; 6,000
B) $10; 8,000
C) $10; 6,000
D) $25; 2,000
E) $10; 4,000

Question

-The figure above shows the market demand curve and the ATC curve for a firm.If all firms in the market have the same ATC curve,the lowest price at which a firm could stay in business in the long run is ________ per unit and the quantity demanded in the market at that price is ________ units per hour.
A) $15; 6,000 
B) $10; 8,000 
C) $10; 6,000 
D) $25; 2,000 
E) $10; 4,000

Quizplus · Accepted Answer

The lowest price at which a firm could stay in business in the long run is where the price equals the minimum of the ATC curve, indicating the lowest average total cost at which the firm can produce without making a loss. This ensures the firm covers all its costs, including opportunity costs, in the long run. The quantity demanded at this price is determined by the intersection of this price with the market demand curve.

-The Figure Above Shows the Market Demand Curve and the ATC