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Secure Cor is a home security provider. In the long run, Secure Cor can provide home security for 20,000 homes each month at a
Secure Cor is a home security provider. In the long run, Secure Cor can provide home security for 20,000 homes each month at a total cost of $600,000, home security for 30,000 homes at a total cost of $750,000, or home security for 40,000 homes at a total cost of $800,000. Use the purple points (diamond symbol) on this graph to plot points of the long-run average cost curve at outputs of 20,000, 30,000, and 40,000 homes. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. AVERAGE COST (Dollars per home per month) 50 0 10 30 HOMES SERVED (Thousands) 20 40 50 Average Cost Suppose that there are 40,000 households that purchase home security in this area. All of Secure Cor's potential rivals face the same long-run average cost curve. True or False: Because Secure Cor faces falling long-run average cost over the relevant output range, it would be inefficient for another firm to enter this home security market. O True O False
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