If a Representative Firm with Long-Run Total Cost Given by TC

question 22

Multiple Choice

If 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 individual firm's will be:

• A) 10 units.
• B) 20 units.
• C) 30 units.
• D) 35 units.
• E) 40 units.

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Definitions:

Operating Activity

Activities that involve the core business operations of a company, such as selling, managing, and producing goods and services.

Paying Interest

The act of providing compensation to lenders for the use of borrowed money, usually calculated as a percentage of the principal amount.

Lenders

Individuals or institutions that provide funds to others under the agreement that the funds will be repaid, typically with interest.

Double-Entry Bookkeeping

An accounting system where every entry to an account requires a corresponding and opposite entry to a different account, ensuring the accounting equation remains balanced.