Suppose There Are 100 Firms Each with a Short Run

question 37

Multiple Choice

Suppose there are 100 firms each with a short run total cost of STC = q² + q + 10,so that marginal cost is MC = 2q +1.If market demand is given by Q_D = 1050 - 50P,total cost to the firm will be

• A) 22
• B) 30
• C) 40
• D) 52

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Definitions:

Discounted Note

A promissory note, or loan agreement, where the interest is deducted from the principal amount at the time the loan is issued.

Interest

The cost of borrowing money or the earnings from lending money, calculated as a percentage of the principal amount.

Adjustment Interest

Adjustment Interest involves the modification of interest income or expense to correct or update the recorded interest in financial records.

Interest Expense

The cost incurred by an entity for borrowed funds, represented as an expense in the income statement.