Projects in highly competitive industries are supposed to have zero NPV. Lets consider a company operating in the highly competitive toy industry. It is contemplating building a toy manufacturing factory. The factory costs $10 million to set up. It costs $5 to make each toy, which will sell for $15. The factory is assumed to have an indefinite physical life and the cost of capital is 10%. What is the competitive production level in term of number of toys produced each year?

Group of answer choices

100,000

200,000

400,000

500,000