-Computer Memory Chips Are Produced on Wafers,each Wafer Having Many

question 115

Multiple Choice

-Computer memory chips are produced on wafers,each wafer having many separate chips that are separated and sold.The above table shows costs for a perfectly competitive producer of computer memory chips.If the market price of a wafer is $2,400 dollars,how many wafers will the firm produce?

• A) 0
• B) 4 or 5
• C) 3 or 4
• D) 1 or 2
• E) 6

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Definitions:

LRMC

Long-Run Marginal Cost, which refers to the change in total production costs that comes from producing one additional unit of a good or service when all inputs are variable.

SRMC

Short-Run Marginal Cost (SRMC) is the cost to produce one additional unit of output when some inputs are fixed.

Grocery Store

A retail establishment that sells food and other household items.

Traffic

The movement of vehicles or people through roads, airways, or any pathway, often used to describe the congestion or flow in transport systems.