A Real Estate Office Handles an Apartment Complex with

question 11

Multiple Choice

A real estate office handles an apartment complex with units.When the rent is per month, all units are occupied.However, when the rent is the average number of occupied units drops to Assume that the relationship between the monthly rent and the demand is linear.Predict the number of units occupied if the rent is raised to

• A)43 units
• B)54 units
• C)57 units
• D)49 units
• E)46 units

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, representing the average cost per unit.

Average Variable Cost

The sum of all costs that vary with output levels, when divided by the total output produced.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at various prices.

Monopolistic Firm

A monopolistic firm is a company that has significant market power to set prices or output levels, often because it is the only supplier of a product or service.