In a Perfectly Competitive Industry, There Are Two Types of Firms

question 145

Multiple Choice

In a perfectly competitive industry, there are two types of firms: low-cost producers and high-cost producers. The minimum average total cost of the high-cost producers is $150. The low-cost producers have a long-run total cost curve given by LTC = 150Q - 15Q² + 0.4Q³, where LMC = 150 - 30Q + 1.2Q². How much economic rent does the low-cost producer earn?

• A) $3,125
• B) $14,000
• C) $710
• D) $45,000

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Definitions:

Vasodilation

The widening of blood vessels, which decreases blood pressure and allows more blood to flow to different parts of the body.

Hyperthermia

An abnormally high body temperature, often caused by prolonged exposure to high temperatures or medical conditions, leading to heat-related illnesses.

Elevated Temperature

A condition where the body's temperature is higher than normal, often indicating a fever or infection.

Fever

An elevation in body temperature above the normal range, often due to infection or illness.