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.

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.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter9: Market Structure And Long-run Equilibrium

Section: Chapter Questions

Problem 3MC

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