Perfectly competitive market

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The table illustrates the long-run average cost values for refrigerator producers in a perfectly competitive market. Use the table below to answer the questions.

            Quantity Produced               Long-Run Average Cost

A.                    10,000                                     $1,200

B.                    20,000                                     $900

C.                    30,000                                     $700

D.                    40,000                                     $700

E.                    50,000                                     $800

F.                     60,000                                     $1,000

What would be the minimum and maximum number of firms you would expect to be in the industry under the following conditions:

                                                            Minimum                   Maximum

Demand is 12 million units                 ______ Firms                _______ Firms

Demand is 40,000 units                      _______Firms                 _______Firms

Reference no: EM13259898

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