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The Figure Given Below Represents a Perfectly Competitive Market in Long-Run

Question 62

Multiple Choice

The figure given below represents a perfectly competitive market in long-run equilibrium.LRS represents the long-run supply curve of this market with demand (D) and price $50.When two large firms merge, output declines to 400 units and per unit production cost drops to $30.

The figure given below represents a perfectly competitive market in long-run equilibrium.LRS represents the long-run supply curve of this market with demand (D) and price $50.When two large firms merge, output declines to 400 units and per unit production cost drops to $30. -Refer to Figure.What is the net benefit of the merger? A) $8,000 B) $2,400 C) $7,400 D) $600
-Refer to Figure.What is the net benefit of the merger?


A) $8,000
B) $2,400
C) $7,400
D) $600

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