Suppose That Each Firm in an Industry Has a Total

question 140

Multiple Choice

Suppose that each firm in an industry has a total cost curve given by TC = 7,000 + 50Q. The lowest average total cost of producing 1,000 units of output occurs when:

• A) two firms each produce 500 units of output.
• B) one firm produces all 1,000 units of output.
• C) four firms each produce 250 units of output.
• D) 10 firms each produce 100 units of output.

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Definitions:

Adverse Possession

A way of acquiring title to real property by occupying it in an open and hostile manner for a statutory period.

Quitclaim Deed

A legal instrument used to transfer interest in real property from one person or entity to another, without any warranty of title.

Warranty of Title

A guarantee in a sales contract that the seller has the legal right to transfer ownership and that there are no undisclosed liens or encumbrances on the property being sold.

Right of Redemption

A legal right that allows a borrower to reclaim their property after it has been sold at foreclosure by paying off the full debt amount, plus additional costs, within a specified timeframe.