Refer to the Diagram Given Below

question 51

Multiple Choice

Refer to the diagram given below.The diagram has two panels: (a) and (b) . Panel (a) represents the demand for and the supply of a brand of automobile (Turbo car) for Fancy Auto, a car manufacturing company.Assume that DL represents the demand for Turbo cars when demand is low, DM represents the demand for Turbo cars when demand is medium, and DH represents the demand for Turbo cars when demand is high.If Fancy Auto's optimal output level is 900 cars per week and the price of Turbo cars is flexible, Fancy Auto:

• A)can continue to sell its optimal output regardless of the demand level.
• B)can produce at its optimal output level only if the level of demand is D_L.
• C)can produce at its optimal output level only if the level of demand is at D_M.
• D)can sell more than its optimal output when the level of demand is D_H.

---

Definitions:

Gasoline Fueled

Powered by gasoline, a petroleum-derived liquid that is used primarily as fuel in internal combustion engines.

Converter Dolly

A wheeled assembly equipped with a towing device that allows trailers to be coupled together into road trains, enhancing cargo transportation efficiency.

Semi-Trailer

A trailer without a front axle, designed to be towed by a road tractor, where a significant portion of its weight and that of its load is borne by the tractor.

Full Trailer

a trailer supported by wheels front and back, designed to be towed by a vehicle with a trailer hitch rather than being semi-supported by the towing vehicle itself.