Refer to the Information Provided in Figure 12

question 112

Multiple Choice

Refer to the information provided in Figure 12.2 below to answer the question(s) that follow. Figure 12.2
-Refer to Figure 12.2. A technological advance causes the supply of personal computers to increase. The graph of this situation represents a

• A) general equilibrium analysis because it identifies what happens to both equilibrium price and quantity of personal computers.
• B) partial equilibrium analysis because it considers only this one industry.
• C) firm-specific analysis because only one firm would be affected by the technological advance.
• D) technological analysis because the change resulted from a technological advance.

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Definitions:

Average Variable Cost

The total variable cost divided by the number of units produced, representing the variable cost per unit of output.

Purely Competitive Market

A market structure characterized by a large number of sellers offering identical products, where no single seller can influence the market price.

Average Fixed Cost

The costs in production that remain constant regardless of output level, when divided by the produced output quantity.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing the excess over the firm's opportunity costs.