Consider a Competitive Firm with a TC = 50

question 10

Multiple Choice

Consider a competitive firm with a TC = 50 + 2q² + q.If price is $21, which statement is true?

• A)The firm produces 5 units of output and is making an economic loss; the firm will exit the industry in the long run.
• B)The firm produces 10 units of output and this is the long-run equilibrium.
• C)The firm produces 5 units of output, and is making a positive economic profit; this is the long-run equilibrium.
• D)The firm produces 5 units of output and this is the long-run equilibrium.
• E)The firm shuts down in the short run and produces zero output; the firm will leave the industry in the long run.

---

Definitions:

Formal Operational

A stage of cognitive development proposed by Jean Piaget, occurring from adolescence onwards, when individuals develop the ability to think abstractly, logically, and systematically.

Inflammation

A biological response of body tissues to harmful stimuli, such as pathogens, damaged cells, or irritants, and is a protective response involving immune cells, blood vessels, and molecular mediators.

Airways

The tubes that carry air in and out of the lungs, including the trachea, bronchi, and bronchioles.

Asthma Diagnosis

The clinical identification of asthma, a chronic respiratory condition marked by episodes of airway constriction, through symptoms assessment and lung function tests.