A Competitive Firm Has a Long-Run Total Cost Function C(y)

question 26

Multiple Choice

A competitive firm has a long-run total cost function c(y) = 5y2 + 1,125 for y > 0 and c(0) = 0. Its long-run supply function is described as

• A) y =if p > 148, y = 0 if p < 148.
• B) y =if p > 150, y = 0 if p < 150.
• C) y =if p > 153, y = 0 if p < 153.
• D) y =if p > 153, y = 0 if p < 165.
• E) y =if p > 155, y = 0 if p < 145.

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Definitions:

Transportation Costs

Expenses associated with the movement of goods or materials from one location to another.

Supply Chain Design

The process of structuring a supply chain to meet the demands of the market, including the selection of suppliers, manufacturers, and distribution centers.

Innovation

The process of translating an idea or invention into a good or service that creates value or for which customers will pay.

Volume Density

Volume density, in logistics and material science, relates to the mass of an object or substance per unit volume, influencing shipping costs, storage requirements, and handling methods.