Use the Following to Answer Question

question 13

Multiple Choice

Use the following to answer question:
-(Table: Total Cost and Output) Use Table: Total Cost and Output,which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm.Which point falls on Sergei's short-run supply curve (assuming he can only produce whole quantities of output) ?

• A)P = $10,Q = 0
• B)P = $20,Q = 2
• C)P = $110,Q = 3
• D)P = $70,Q = 5

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Definitions:

ATC

Average Total Cost, the sum of all costs divided by the quantity of output produced, a key concept in economics for understanding profitability at different production levels.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing full industry adjustment.

Output

The overall output of products or services from a business, industry, or national economy.

ATC Curve

Refers to the Average Total Cost curve in economics, which depicts how the total costs per unit of output change as the level of production is altered.