-The Above Figure Shows the Cost Curves for a Competitive

question 18

Multiple Choice

-The above figure shows the cost curves for a competitive firm.If the profit-maximizing level of output is 40,price is equal to

• A) $0.
• B) $15.
• C) $10.
• D) $11.

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Definitions:

Price-Elasticity

A measure of how responsive the quantity demanded of a good is to a change in its price, indicating how shifts in price can affect supply and demand.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a specific price.

Coefficient

A predetermined or specific number that is positioned in front of and serves to multiply the variable in a mathematical expression.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity supplied.