Suppose in the automobile industry with free entry and exit, the margi

Suppose in the automobile industry with free entry and exit, the marginal cost is constant at $5,000, two identical manufacturers are currently producing 1,000 cars each and earning zero economic profit.

If the equilibrium price is $20,000, then what is the fixed cost for each manufacturer? A) $20,000,000
B) $15,000,000
C) $5,000,000
D) $10,000,000

ANSWER

B