-The Above Figure Shows the Market Demand Curve for Long-Distance

question 149

Multiple Choice

-The above figure shows the market demand curve for long-distance land-based telephone calls.Suppose the marginal cost of a long-distance telephone call is 2¢ a minute for a call no matter how many minutes of calls are made and there are 3 firms in the industry.If the firms in the industry operate as perfect competitors,there are ________ minutes of calls made per hour.

• A) between 0 and 3 million
• B) more than 3 million and less than or equal to 5 million
• C) more than 5 million and less than or equal to 7 million
• D) more than 7 million and less than or equal to 9 million
• E) more than 9 million

---

Definitions:

Lead Indicator

A forward-looking metric or measure that can predict future trends or outcomes in a business or economy.

Financial Perspective

An angle focusing on the financial objectives and performance measures of an organization, often featured in a balanced scorecard approach to strategic management.

Lead Indicators

Metrics that are used to predict future performance or trends before they can be measured by lagging indicators.

Cause And Effect

A relationship in which one event (the cause) makes another event happen (the effect).