Scenario: a Perfectly Competitive Firm Has the Following Cost Functions

question 227

Multiple Choice

Scenario: A perfectly competitive firm has the following cost functions:
Total cost: TC(q) = $10,000 = $100q = $10q²,
Marginal cost: MC(q) = $100 + $20q,
and it faces a market price of $900 per unit. The average and total cost curves are shown in the following figure.

-Refer to the scenario above.The firm's average total cost is given by ________.

• A) $10,000
• B) $100 + $20q
• C) $100 + $10q
• D) $10,000/q + $100 + $10q

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Definitions:

Networking Ability

The skill to establish and maintain professional relationships that can be beneficial for personal or organizational growth.

Insincerity

The quality of not expressing genuine feelings; deceitfulness or fake behavior.

Forming Coalitions

The process of bringing together multiple groups or individuals with the purpose of achieving a common goal or addressing a specific issue.

Incurring Obligations

The act of binding oneself by a social, legal, or moral requirement to do something or incur a liability.