Use the Table Below to Answer the Following Questions

question 107

Multiple Choice

Use the table below to answer the following questions.
Table 12.2.3

-Refer to Table 12.2.3 which gives the total cost schedule for Brenda's Balloon Shop, a perfectly competitive firm. The average variable cost of producing the 1st balloon is

• A)$1.00.
• B)$4.00.
• C)$2.00.
• D)$4.80.
• E)$3.00.

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Definitions:

Demand

Demand refers to the quantity of a product or service that consumers are willing and able to purchase at various prices during a given time period.

Inverse Demand Curve

A representation of the demand for a good showing the maximum price consumers are willing to pay for a given quantity.

Perfect Price Discrimination

Perfect price discrimination occurs when a seller charges each buyer their maximum willingness to pay, extracting all consumer surplus.

Total Profits

The sum of earnings from a business operation, after all expenses have been deducted from total revenue.