Question 13
HardOriginal questionIn the case above (minimum AC ₹12, 360 units sold), each firm produces 20 units at minimum AC. How many firms are there in the long run?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Number of firms = market quantity ÷ output per firm = 360 ÷ 20 = 18.
- Concept
- Number of firms in the long run
- Typical timeTypical
- 100 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Market Equilibrium & Price Controls, at your own pace.