Suppose that for each firm in the competitive market for potatoes, long-run average cost is minimized at $0.20 per pound when 500 pounds are grown. The demand for potatoes is Q = 10,000/p. If the long-run supply curve is horizontal, then how many firms will this industry sustain in the long run?

Refer to the given figure and assumptions. Assume initially that government does not effectively block illegal immigration. If the government then finds a way to prevent all illegal immigrants from working in this labor market:

Assumptions: (1) Employers in this market are willing and able to ignore minimum wage laws;
(2) S d represents the supply of domestic-born (and legal immigrant) workers; (3) S t represents
the total supply of workers in this labor market (S d plus illegal immigrants); and (4) unless
otherwise stated, illegal immigration is not effectively blocked by the government.

A.  10,000 domestic-born workers will gain employment at the expense of 20,000 illegal
immigrants.
B.  20,000 domestic-born workers will gain employment at the expense of 20,000 illegal
immigrants.
C.  10,000 domestic-born workers will gain employment at the expense of 70,000 illegal
immigrants.
D.  10,000 domestic-born workers will gain employment at the expense of 50,000 illegal
immigrants.

In the long-run, a monopolist charges the same price as a perfectly competitive firm.

Answer the following statement true (T) or false (F)