Figure 14-9

question 88

Multiple Choice

Figure 14-9
In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive market, and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firms.
-Refer to Figure 14-9. If at a market price of $1.75, 52,500 units of output are supplied to this market, how many identical firms are participating in this market?

• A)75
• B)100
• C)250
• D)300

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Definitions:

Selling Expense

Costs associated with the marketing and selling of a company's products or services, including advertising and sales personnel expenses.

Period Cost

Costs that are not directly tied to the production of goods and are expensed within the period they occur.

Construction Contractor

A person or company that agrees to supply services or perform work at a specified price, especially for construction projects.

Direct Materials

Direct materials are raw materials that are directly traceable to the production of specific goods or services and are a key component in determining the cost of goods sold.