The Market for Sweet Potatoes Consists of 1,000 Identical Firms $S T C = 100 + 100 q + 100 q ^ { 2 }$

question 8

Multiple Choice

The market for sweet potatoes consists of 1,000 identical firms. Each firm has a short-run total cost curve of $S T C = 100 + 100 q + 100 q ^ { 2 }$ , and a short-run marginal cost curve of $S M C = 100 + 200 q$ where $q$ is output. What is the minimum level of average variable costs?

• A) \(A V C = 200\).
• B) \(A V C = 0\).
• C) \(A V C = 100\).
• D) \(A V C = P\).

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Definitions:

Personal Computer Industry

The sector of the economy that manufactures and markets desktop, laptop, and related personal computing devices.

Composite Score

An overall rating or assessment made up of several individual scores or measurements.

Holding Cost Rate

The percentage of the value of inventory held in storage, reflecting the cost associated with storing and maintaining it over a given period.

Economical

Pertaining to efficient resource usage or offering good value for money.