The Range of Output for a Duopoly Ranges Between the

question 93

Multiple Choice

The range of output for a duopoly ranges between the

• A) perfectly competitive outcome and the monopolistically competitive outcome.
• B) efficient scale and the perfectly competitive outcome.
• C) minimum of ATC and the efficient scale.
• D) monopoly outcome and the perfectly competitive outcome.
• E) short-run perfectly competitive outcome and the long-run perfectly competitive outcome.

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Definitions:

AVC Curve

The Average Variable Cost curve, which graphs the per unit variable costs of production against the quantity of output.

Average Variable Cost

The total variable costs (such as labor and materials) divided by the quantity of output produced.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity of output produced, indicating the cost of producing each unit of output.

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor costs.