A Firm Has the Following Cost Structure: ٍ

question 586

Multiple Choice

A firm has the following cost structure: ٍ
If this firm is in a typical perfectly competitive market, in the long run it will likely produce

• A)8 or fewer units of output.
• B)10 units of output.
• C)more than 10 units of output.
• D)None of the above are necessarily correct because there is not enough information to tell.

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Definitions:

Optimal Point

The most favorable condition, level, or amount of something for achieving a specific goal or outcome.

Arousal

A psychological and physiological state of being awake or reactive to stimuli.

Intracellular Thirst

A form of thirst resulting from the osmotic pressure changes within cells, often caused by high intake of salt or loss of water.

Extracellular Thirst

Thirst caused by reduced volume of the extracellular fluid, which is the fluid outside the cells.