Asked by
Grace Feldstein
on Oct 27, 2024
Verified
(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?
A) 600 pounds
B) 500 pounds
C) 400 pounds
D) 0 pounds
Long-run Equilibrium
A state in which all factors of production can be adjusted, allowing for the optimal allocation of resources in a market or economy over time.
Identical Cost Curves
These are cost curves for different firms that have the same shape and attributes, indicating that the firms have the same cost structure at various levels of output.
Industry Produce
The total output of goods and services produced by all the firms operating in a particular industry.
- Deduce the overall supply in the market by evaluating the supply output of individual businesses in a perfectly competitive environment.
- Estimate the market's reaction to changes in cost and demand for both the short-term and long-term scopes.
Verified Answer
AA
Learning Objectives
- Deduce the overall supply in the market by evaluating the supply output of individual businesses in a perfectly competitive environment.
- Estimate the market's reaction to changes in cost and demand for both the short-term and long-term scopes.