Figure 9-1 Figure 9-1 Shows the Marginal and Average Total Cost Curves

question 496

Multiple Choice

Figure 9-1
Figure 9-1 shows the marginal and average total cost curves for a firm producing product A. What would be the minimum price this firm could charge and still continue to supply A to the market in the long run?

• A) $4
• B) $5
• C) $6
• D) $8

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Definitions:

Expressed Constitutional Grant

Specific powers explicitly outlined in a constitution that are granted to a particular branch of government or official.

Federal Legislation

Laws enacted by the national government of a country, applicable throughout the country and superseding state laws in areas of federal authority.

Authority

The legal or formal right to make decisions, to give orders, and to control resources and people.

Dormant Commerce Clause

A restriction on states’ authority that is implied in the commerce clause of the U.S. Constitution: The power given to Congress to enact legislation that affects interstate commerce in effect prohibits a state from passing legislation that improperly burdens interstate commerce.