Refer to the Information Provided in Table 8 $\text {Number of}$

question 371

Multiple Choice

Refer to the information provided in Table 8.6 below to answer the question(s) that follow.
Table 8.6 $\text {Number of}$
$\begin{array}{llllllll}\text {Earrings}&\text { TVC}&\text { MC }&\text {AVC}&\text { TFC }&\text {TC}&\text { AFC}&\text { ATC}\\\hline0 & & & & && \\1 & 10& & & & \\2 & & 5& & & &15& \\3 & & & & &55& \\4 & & &10 & & & \\5 & & & & &90&\\\hline\end{array}$


-Refer to Table 8.6. From the information in the given table,

• A) the firm is in the long run.
• B) the firm eventually experiences diminishing returns to its variable input.
• C) the marginal cost curve intersects the average total cost curve between 3 and 4 units of output.
• D) the difference between total cost and total variable cost decreases as output increases.

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Definitions:

Acceptance

The agreement to the terms of an offer, contract, or proposal, thereby creating a binding legal obligation.

Roof

The structure covering the top of a building, designed to protect against weather, animals, and other external factors.

Invitation

An offer to deal or negotiate that indicates a willingness to enter into a contract under specified terms.

Firm Offer

An offer made in writing by a merchant guaranteeing to hold the offer open for a specified period of time without revocation.