Question
The market for raspberries is perfectly competitive and is in a long-run equilibrium. Each firm's long-run average cost is minimized at $4.00 per pint of
The market for raspberries is perfectly competitive and is in a long-run equilibrium. Each firm's long-run average cost is minimized at $4.00 per pint of raspberries and a quantity of 1000 pints. The market demand for a pint of raspberries is: Q = 16,000 - 1,000P where P is the price in dollars and Q is a pint of raspberries. Assume all firms in the market have the same costs and that these costs are the same in the short-run and long-run. What is the total amount currently spent by all consumers in the market?
Group of answer choices
a) $0
b) $4,000
c) $12,000
d) $48,000
e) More information is needed to solve the problem.
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