Exhibit 10-1 A Perfectly Competitive Producer Has the Following Short-Run Average Cost

question 119

Multiple Choice

Exhibit 10-1
A perfectly competitive producer has the following short-run average cost curve and marginal cost curve:
SR AC = 2Q + 3
MC = 4Q + 3
where costs are measured in dollars and Q represents the firm's output in units.
-The firm whose short-run cost curves are given in Exhibit 10-1 has a long-run fixed cost of

• A)$0.
• B)$2.
• C)$3.
• D)$4.