GoodWis produced in a competitive industry with increasing costs of production. The figure below shows how a typical firm's long-run average cost curve shifts upward as industry output of goodWexpands. With 50 firms in the industry, each firm faces an identical long-run average cost curve given byLAC. With 80 firms in the industry, each firm faces an identical long-run average cost curve given byLAC'. And with 120 firms in the industry, each firm faces an identical long-run average cost curve given byLAC".

When there are 50 firms in the industry in long-run competitive equilibrium, the economic profit earned by each firm is $_________.

Multiple Choice

• $0
• $5,000
• $50,000
• $500,000
• None of the choices are correct.