(Figure: Price and Quantity of Output and Table I) for Simplicity

question 30

Multiple Choice

(Figure: Price and Quantity of Output and Table I) For simplicity, assume that there are only three firms in a perfectly competitive industry; their short-run supply curves are depicted in the graph. At a market price of $20, the industry output is ____.

• A) 15
• B) 9.5
• C) 4
• D) 1

---

Definitions:

Capital Expenditure

Resources utilized by a business to purchase, improve, and upkeep tangible assets like real estate, factories, or machinery.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities or equity on a company’s balance sheet.

Asset Account

An account on a balance sheet that represents a resource owned or controlled by a company, expected to produce future economic benefits.

Acquisition Cost

The total expense incurred to obtain an asset, including the purchase price and all related costs to ready the asset for its intended use.