-The Figure Above Shows the Market Demand Curve and the ATC

question 30

Multiple Choice

-The figure above shows the market demand curve and the ATC curve for a firm. If all firms in the market have the same ATC curve, the lowest price at which a firm could stay in business in the long run is ________ per unit and the quantity demanded in the market at that price is ________ units per hour.

• A) $20; 8,000
• B) $20; 2,000
• C) $20; 4,000
• D) $10; 8,000
• E) $10; 4,000

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Definitions:

Problem Definition

involves identifying and outlining the specifics and boundaries of an issue that needs resolution.

Creativity

The ability to produce original and unusual ideas, or to make something new or imaginative.

Decision Making

The act of determining choices by pinpointing a decision, accumulating information, and examining other possible answers.

Preset Level

A predetermined or established level or standard that needs to be achieved or which serves as a benchmark for performance or operation.