Suppose that, in the long run, a dairy's variable costs are VC = 2Q2 (where Q is the number of gallons of milk produced each day), its marginal cost is MC = 4Q and there is an avoidable fixed cost of $50 per day. In the long run there is free entry into the market. The long run market supply curve is:
A. vertical at 5 gallons per day.
B. horizontal at $20 per gallon.
C. horizontal at $50 per gallon.
D. horizontal at $100 per gallon.
B. horizontal at $20 per gallon.
You might also like to view...
Provide an economic explanation for why government subsidization of child immunizations may lead to a more efficient outcome
What will be an ideal response?
If Mousey Mike threatens to tell, what would Bratty Brad's best response be?
a. Hit b. Not hit c. Run d. Hide
Which of the following is an example of an injection into the circular flow of income and expenditure?
a. Government spending b. Imports c. Disposable income d. Net taxes e. Saving
Most voters will likely be concerned with
a. most issues since most issues have some impact, however slight, on each citizen. b. only a few special issues (those that exert the most impact on the voters' personal welfare). c. most issues since information on most issues can be obtained at a low cost. d. the views of a particular political candidate on all issues.