Figure 4-7 ​

question 260

Multiple Choice

Figure 4-7 ​
-Refer to Figure 4-7. At a price of $15, there would be a

• A)surplus of 200 units.
• B)surplus of 100 units.
• C)shortage of 200 units.
• D)shortage of 100 units.

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Definitions:

Marginal Cost Curve

A graphical representation showing how the cost of producing one more unit of a good varies with the level of output.

Average Revenue

Total revenue from the sale of a product divided by the quantity of the product sold (demanded); equal to the price at which the product is sold when all units of the product are sold at the same price.

Average Cost

is the cost per unit of output, calculated by dividing total costs by the total quantity of output produced.

Patent

A legal document granted by the government, giving an inventor exclusive rights to use, make, and sell an invention for a certain period of time.