A Firm Has the Long-Run Cost Function C(q) = 3q2

question 14

Multiple Choice

A firm has the long-run cost function C(q) = 3q2 + 27.In the long run, it will supply a positive amount of output, so long as the price is greater than

• A) $36.
• B) $44.
• C) $9.
• D) $18.
• E) $23.

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Definitions:

Reward-To-Risk Ratio

An assessment tool employed by investors to evaluate the potential returns of an investment relative to the level of risk involved in achieving those returns.

Market Efficiency

describes a market in which asset prices fully reflect all available information at any given time, making it impossible to consistently achieve higher returns.

Unexpected Return

The difference between the actual return of an investment and the expected return, usually arising from unexpected factors or events.

Expected Return

The anticipated return on an investment, accounting for the probabilities of different outcomes, including gains and losses.