A Representative Firm with Long-Run Total Cost Given by TC

question 7

Multiple Choice

A representative firm with long-run total cost given by TC = 2,000 + 20q + 5q² operates in a competitive industry where the market demand is given by Q_D = 10,000 - 40P.The long-run equilibrium output of the industry will be:

• A) 1,200 units.
• B) 1,800 units.
• C) 2,200 units.
• D) 2,600 units.
• E) 3,200 units.

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Definitions:

Compound Interest

Interest calculated on the initial principal which also includes all of the accumulated interest from previous periods on a deposit or loan.

Simple Interest

Interest calculated on the principal portion of a loan or deposit, without compounding over time.

Holding-Period Return

The overall return earned from owning an asset or a collection of assets over a specified duration, often represented as a percentage.

Dividend

Funds distributed by a corporation to its shareholders, typically from the company's earnings.