Question
192) Suppose the market demand for milk is Qd = 150 - 5P. Additionally, suppose that a dairy's variable costs are VC=2Q (where Q
192) Suppose the market demand for milk is Qd = 150 - 5P. Additionally, suppose that a dairy's variable costs are VC=2Q (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 in there is free entry into the market. How many active firms are in the market? A 50 B) 5 C) 10 D) 20
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Modern Principles of Economics
Authors: Tyler Cowen, Alex Tabarrok
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1429278390, 978-1429278416, 1429278412, 978-1429278393
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