The Following Table Gives the Average Cost of Production for Three

question 37

Multiple Choice

The following table gives the average cost of production for three different categories of firms producing the same product.

$$\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Type of } \\\text { firme }\end{array} & \begin{array} { c } \text { No. of } \\\text { firms }\end{array} & \begin{array} { c } \text { Awerane } \\\text { sostper } \\\text { unit }\end{array} & \begin{array} { c } \text { Equilibrium } \\\text { output }\end{array} \\\hline \hline \text { A } & 350 & \$ 3 & 10 \text { units } \\\text { B } & 400 & \$ 5 & 10 \text { units } \\\text { C } & 550 & \$ 10 & 10 \text { units } \\\hline\end{array}$$
-Refer to Table .Suppose the demand for the commodity rises from 3,200 units to 3,500 units and the market price increases to $5.Which of the following situations will be observed?

• A)Type A will supply 3,200 units and earn normal profits while Type B will supply the remaining at a loss.
• B)Type A and Type B firms will jointly supply 3,500 units and both will break even.
• C)Type A firms will supply 3,200 units and Type B will supply the rest.
• D)Type A firms will supply 3,500 units and earn supernormal profit.

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Definitions:

Interpersonal Relationships

Interactions and connections between two or more people which can be emotional, social, or professional in nature.

Independent Variable

A variable in an experiment or model that is manipulated to determine its effect on a dependent variable.

Verbal Punishment

A disciplinary method involving the use of words to reprimand or criticize someone for their actions, rather than physical consequences.

Problem Behaviors

Actions or conduct that are considered undesirable or disruptive, often studied in psychology and education.