Use the Following to Answer Question

question 20

Multiple Choice

Use the following to answer question:
-(Table: Lunch) Use Table: Lunch.This table shows market demand for picnic lunches for people taking all-day rafting trips on the river.Joe has a firm providing this service,and his marginal cost and average cost for each lunch are a constant $4.If Joe is a monopolist,how many lunches will he produce in the long run?

• A)0
• B)10
• C)20
• D)30

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Definitions:

Promise

A commitment or assurance given by one party to another that they will do or not do something in the future.

Offeror

The party in a contractual agreement who proposes the terms of an offer to another party (the offeree).

Consideration

Consideration refers to something of value promised to another party in exchange for something else, forming a legal reason for parties to enter into a contract.

Common Law

A body of unwritten laws based on legal precedents established by the courts, distinct from statutory law.