The following table shows cost data for a firm that is selling in a purely competitive market.
Refer to the above table. Now assume there are 100 identical firms in this industry, each of which has the same cost data as the single firm described above. Suppose too that the demand curve for this industry is as shown below:
The equilibrium price will be:
A. $140
B. $180
C. $230
D. $290
B. $180
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A U.S. tariff imposed on items that can be produced more cheaply abroad
A) benefits Americans by making these goods cheaper. B) makes the goods more expensive in foreign markets. C) creates a deadweight loss. D) makes the world market more efficient.
A critical assumption differs from a simplifying assumption in that a critical assumption
a. is a means of getting rid of extraneous details in the model b. cannot affect the conclusions of the model c. can affect the conclusions of the model d. is rarely used in economic models e. is never a fundamental assumption