Suppose the Variable Cost to Produce Quantity Q Is TC(q)=

question 65

Multiple Choice

Suppose the variable cost to produce quantity q is TC(q) = q²/10. Suppose the firm is a price- taker and the market price is p = 100; its fixed cost is currently 6600. If this firm wants to stay in business, it has to:

• A)reduce its fixed cost to 6,000.
• B)do nothing.
• C)reduce its fixed cost to zero.
• D)reduce its fixed cost to 5,000.

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Definitions:

Surface Language

The literal or overt meaning of language, as opposed to underlying or implicit meanings.

Facial Expressions

Visible expressions on a person’s face that convey emotional states, intentions, or reactions.

Inner Emotions

Deep-seated feelings that might not be immediately visible or expressed to others.

Primacy Effect

The tendency to remember information that is encountered first more easily than information that is encountered later.