A Firm Faces the Demand for Its Product, , as Shown

question 7

Multiple Choice

A firm faces the demand for its product, , as shown in the figure below. It produces under conditions of constant costs in the long run, and LMC = LAC = $12 per unit. Answer Questions .
-Under uniform pricing, the firm loses sales on _______ units that could be profitably sold if buyers paid their demand prices instead of facing the uniform price.

• A) 44
• B) 50
• C) 88
• D) 176

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Definitions:

Marginal Product

The increase in output that results from employing one more unit of a particular input, holding all other inputs constant.

Average Total Cost

The total cost of production divided by the quantity of output produced. It includes both fixed and variable costs.

Marginal Product

Marginal Product is the additional output that results from using one more unit of a particular input, holding other inputs constant.

Average Product

The output per unit of input, typically calculated by dividing total output by the quantity of a specific input used.