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24.07.2020 •
Mathematics
Suppose that for each firm in the competitive market for potatoes, long-run average cost is minimized at $0.6 per pound when 150 pounds are grown. The demand for potatoes is Q = 40,000/p. If the long-run supply curve is horizontal, then what would be the total consumer spending?
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Ответ:
Total consumer spending is 160
Step-by-step explanation:
Here , we are interested in calculating the total consumer spending.
In a long run perfect competition market, price interest with MC and minimum point of AC
Hence , P = AC
this means that Q = 40,000/P = 40,000/150 = 266.67 which is approximately 267 potatoes will be consumed
The total consumer spending is thus 267 * 0.6 = 160
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Step-by-step explanation: