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

question 13

Multiple Choice

If a representative firm with long-run total cost given by TC = 50 + 2q + 2q² operates in a competitive industry where the short-run market demand and supply curves are given by Q_D = 1,410 - 40P and Q_S = -390 + 20P,its long-run profit-maximizing level of output is:

• A) 0 units.
• B) 1 unit.
• C) 2 units.
• D) 5 units.
• E) 7 units.

---

Definitions:

Shipping Terms

Agreements or conditions that specify the responsibilities of the buyer and seller in the delivery of goods, including who pays for shipping and insurance.

Merchandise

Goods that are bought and sold in the course of business, usually in a retail environment.

Delivery Expense

The costs incurred by a business to transport its goods to the customer, often treated as a direct or indirect expense depending on the nature of the expense allocation.

Expense Account

An accounting account that tracks money spent or costs incurred in a business entity's operation.