Industry demand is given by P = 200 - .4Q. The long-run industry costs are such that: LAC = LMC = $80. Based on this information, which of the following is true?
A) If the market is a pure monopoly, the price of the good will be $140.
B) If the market is perfectly competitive, 300 units of the good will be supplied.
C) If the market is perfectly competitive, the price of the good will be $100.
D) If the market is a pure monopoly, 200 units of the good will be produced.
E) Answers if the market is a pure monopoly, the price of the good will be $140 and if the market is perfectly competitive, 300 units of the good will be supplied are both correct.
Correct Answer:
Verified
Q4: Which of the following is a characteristic
Q5: Which of the following is true of
Q6: The following figure shows the demand curve
Q7: Which of the following is a criticism
Q8: Which of the following is true of
Q10: A monopolist maximizes profit by producing:
A) on
Q11: A market is considered a pure monopoly
Q12: A monopoly earns positive economic profits in
Q13: Cartels are inherently unstable because individual members:
A)
Q14: The following figure shows the demand curve
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