Use the Following Scenario to Answer the Following Questions

question 4

Multiple Choice

Use the following scenario to answer the following questions:
Chuck Diesel Burger is a food truck in Houston,Texas.Imagine that Chuck Diesel Burger's minimum average total cost (ATC) is $3.75 and that its minimum average variable cost (AVC) is $2.50.Assume there are no barriers to enter into or exit from the food-truck market.
-Refer to the accompanying table.A firm participating in a competitive market with these costs would be making a profit if the price is

• A) $6.
• B) $8.
• C) $4.
• D) $2.
• E) either $6 or $8.

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Definitions:

Spinout Condition

A scenario in driving where the vehicle loses traction and spins out of control, often due to slippery conditions.

Power Divider

A differential mechanism in heavy trucks that allows for distribution of power between the front and rear axles for improved traction.

Differential Carrier

The housing that contains the differential assembly, facilitating the variation in wheel speed on a vehicle.

Differential Carrier

the housing that contains the differential gear set in a vehicle, allowing for the difference in wheel speed between the driving wheels.