Each widget firm has the cost structure illustrated in the left graph below. The right graph illustrates two different possible demand curves for widgets, D1 and D2. MC ATC Đ2 AVC D1 0123456789 1011 12g 1200 2400 Suppose the required assumptions for a perfectly elastic long run supply curve hold for the widget industry. Also, assume that the demand for widgets is depicted by the demand curve D1, and that the industry is in long-run equilibrium. What is the long- run output (quantity produced) for the entire industry? O 1600 O 1200 O 2000 O800 400

Each widget firm has the cost structure illustrated in the left graph below. The right graph illustrates two different possible demand curves for widgets, D1 and D2. MC ATC Đ2 AVC D1 0123456789 1011 12g 1200 2400 Suppose the required assumptions for a perfectly elastic long run supply curve hold for the widget industry. Also, assume that the demand for widgets is depicted by the demand curve D1, and that the industry is in long-run equilibrium. What is the long- run output (quantity produced) for the entire industry? O 1600 O 1200 O 2000 O800 400

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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