In the Short Run for a Particular Market, There Are

question 301

Multiple Choice

In the short run for a particular market, there are 300 firms. Each firm has a marginal cost of $30 when it produces 200 units of output. $30 is above every firm's average variable cost. One point on the market supply curve is

• A)quantity = 300; price = $30.
• B)quantity = 600,000; price = $90,000.
• C)quantity = 100,000; price = $30.
• D)quantity = 60,000; price = $30.

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Definitions:

Fixed Assets

Long-term tangible pieces of property or equipment that a firm owns and uses in its operations to generate income.

Required Rate Of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to commit their money.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the company's short-term liquidity and financial health.

Net Present Value (NPV)

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of an investment or project.