TABLE 10- 2 Your Food- Services Company Has Been Named

question 52

Multiple Choice

TABLE 10- 2 Your food- services company has been named as the sole provider of meals at a small university.The cost and demand schedules are: $$\begin{array} { | c | c | c | c | c | } \hline \text { Sold per Day } & \begin{array} { c } \text { Price per } \\\text { Meal }\end{array} & \begin{array} { c } \text { Total } \\\text { Fixed Cost }\end{array} & \begin{array} { c } \text { Total } \\\text { Variable Cost }\end{array} & \begin{array} { c } \text { Total } \\\text { Revenue }\end{array} \\\hline 0 & \$ 3.50 & \$ 150 & \$ 0 & \$ 0 \\\hline 100 & \$ 3.25 & \$ 150 & \$ 300 & \$ 325 \\\hline 200 & \$ 3.00 & \$ 150 & \$ 500 & \$ 600 \\\hline 300 & \$ 275 & \$ 150 & \$ 650 & \$ 825 \\\hline 400 & \$ 250 & \$ 150 & \$ 750 & \$ 1000 \\\hline 500 & \$ 225 & \$ 150 & \$ 830 & \$ 1125 \\\hline 600 & \$ 200 & \$ 150 & \$ 905 & \$ 1200 \\\hline 700 & \$ 1.75 & \$ 150 & \$ 995 & \$ 1225 \\\hline\end{array}$$
-Suppose the technology of an industry is such that the typical firm's minimum efficient scale is 8000 units per month at an average long- run cost of $5 per unit.If the total quantity demanded at a price of $5 per unit is 8500 units per month,the likely result would be

• A)a concentrated oligopoly.
• B)a cartel.
• C)price discrimination.
• D)a natural monopoly.
• E)perfectly competitive firms.

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Definitions:

Dust Bowl

A period during the 1930s characterized by severe dust storms, significantly damaging the ecology and agriculture of the US and Canadian prairies.

Transportation

The movement of people or goods from one place to another using various modes such as cars, trains, ships, or planes.

North America

A continent that includes Canada, the United States, Mexico, and Greenland, characterized by diverse ecosystems and cultures.

Noise Pollution

Unwanted or harmful outdoor sound caused by human activities, such as traffic, construction, or industrial actions, that can have health effects.