Suppose that for each firm in the competitive market for potatoes, the long-run average cost is minimized at $0.20 per pound when 500 pounds are grown. Which of the following statement is correct?

Question

Answer

Some firms will enjoy long-run profits because they operate at minimum average cost.

Answer

The long-run price will be set above $0.20 per pound.

Answer

The long-run price will be $0.20 per pound.

Answer

Each consumer will purchase $100 worth of potatoes.

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Suppose that for each firm in the competitive market for potatoes, the long-run ...

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