-The Above Figure Shows the Market Demand Curve for Long-Distance

question 7

Multiple Choice

-The above figure shows the market demand curve for long-distance land-based telephone calls. Suppose the marginal cost of a long-distance telephone call is 2 cents per minute for a call no matter how many minutes of calls are made and there are three firms in the industry. If the firms in the industry operate as perfect competitors, there are ________ minutes of calls made per hour.

• A) between 0 and 3 million
• B) more than 5 million and less than or equal to 7 million
• C) more than 3 million and less than or equal to 5 million
• D) more than 9 million
• E) more than 7 million and less than or equal to 9 million

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Definitions:

Market

A venue or system where buyers and sellers engage in the exchange of goods, services, or financial instruments.

Face Value

The nominal or dollar value printed on a bond, bill, or other financial instrument, representing the amount to be repaid at maturity.

Coupon Rate

The annual rate of interest specified on a bond, expressed as a percentage of its face value.

Annual Coupon

The yearly interest payment paid to bondholders, typically expressed as a percentage of the bond's face value.