A Firm Faces the Demand for Its Product $P = 100 - 0.5 Q$

question 11

Multiple Choice

A firm faces the demand for its product, $P = 100 - 0.5 Q$ ,as shown in the figure below.It produces under conditions of constant costs in the long run,and LMC = LAC = $12 per unit. Under uniform pricing,the firm loses sales on _______ units that could be profitably sold if buyers paid their demand prices instead of facing the uniform price.

• A)44
• B)50
• C)88
• D)112

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Definitions:

Rhizomes

Underground plant stems that send out roots and shoots from its nodes, involved in vegetative reproduction and storage.

Tubers

Thickened, usually underground parts of a stem or rhizome, storing nutrients.

Corms

Underground plant stems that serve as storage organs and help in vegetative reproduction, found in species like crocuses and gladioli.

Stolons

Horizontal above-ground plant stems or runners that take root at various intervals, spreading asexually to produce new plants.