Which of the Following Is the Case Where Capacity Is

question 171

Multiple Choice

Which of the following is the case where capacity is measured in terms of inputs?

• A)tons of steel per day that can be produced by a steel mill
• B)kilowatt hours per day that can be generated by an electrical power plant
• C)number of meals per day that can be served by a restaurant
• D)gallons of gasoline that can be produced per day by a petroleum refinery
• E)number of passenger seats that can be filled per day on an airline route

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Definitions:

Market Price

The existing cost for purchasing or selling an asset or service on the open market.

Purely Competitive Market

A market structure characterized by many buyers and sellers, all of whom sell identical products, which results in the agents having no control over prices.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs.

Average Fixed Cost

Production costs that stay unchanged with output levels, split by the amount of produced output.