The Graph Shown Represents the Cost and Revenue Curves of a Firm

question 110

Multiple Choice

The graph shown represents the cost and revenue curves of a firm in a perfectly competitive market. The long run output decision for this firm is:

• A)Q1, P1.
• B)Q1, P2.
• C)Q2, P1.
• D)Q3, P3.

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Definitions:

Convenience Goods

Convenience goods are consumer items that are widely available and purchased frequently with minimal effort, such as groceries and basic household items.

Expense Item

An expenditure or cost incurred by a business or individual, which is recorded and tracked for financial accounting purposes.

Introductory Stage

The initial phase in the product life cycle, characterized by product launch, limited distribution, and marketing efforts to build awareness.

Moisturizing Shampoo

A hair care product specifically formulated to add moisture and prevent dryness.