-Fast Copy Is a Perfectly Competitive Firm

question 37

Multiple Choice

-Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. The current market price is 2 cents per page. With no change in demand and technology, in the long run, the price will

• A) remain unchanged.
• B) rise to 5 cents per page.
• C) rise to 4 cents per page.
• D) fall to 1 cent per page.

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Definitions:

Bonds

Fixed income investments representing a loan made by an investor to a borrower, often corporate or governmental, which pays periodic interest payments.

Discount

A reduction from the full price or value of a good, service, or financial instrument.

Face Amount

The nominal value stated on the face of a financial instrument, such as a bond, that the issuer promises to pay at maturity.

Prepaid Property Tax

An expense recorded when property taxes are paid in advance before they are due, treated as an asset on the balance sheet.