Exhibit 10-1 A Perfectly Competitive Producer Has the Following Short-Run Average Cost

question 119

Multiple Choice

Exhibit 10-1
A perfectly competitive producer has the following short-run average cost curve and marginal cost curve:
SR AC = 2Q + 3
MC = 4Q + 3
where costs are measured in dollars and Q represents the firm's output in units.
-The firm whose short-run cost curves are given in Exhibit 10-1 has a long-run fixed cost of

• A)$0.
• B)$2.
• C)$3.
• D)$4.

---

Definitions:

Reward Systems

Mechanisms within organizations designed to motivate and incentivize employees by recognizing their contributions and achievements.

Team Cohesiveness

The extent to which team members are attracted to the team and motivated to remain part of it, leading to better teamwork, communication, and overall team performance.

Brooks's Law

A principle stating that adding more manpower to a late software project only makes it later.

Software Project

A designed set of related software activities that seeks to accomplish a specific goal within a given timeline and budget.