Refer to the information below. If the firms compete, what is the equilibrium quantity in the market?

A small nation has three gasoline suppliers with a linear monthly market demand equal to: Q = 500,000 - 5P. Each firm's marginal cost (MC) and average total cost (ATC) curves are horizontal at $10,000 per month.

A) 45,000 B) 500,000 C) 450,000 D) 50,000


C) 450,000

Economics

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