A Firm Has a Long-Run Cost Function, C(q) = 8q²

question 2

Multiple Choice

A firm has a long-run cost function, C(q) = 8q² + 288. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

• A) $200.
• B) $192.
• C) $96.
• D) $48.
• E) $101.

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Definitions:

Covenant

A formal, binding agreement or promise, often found in contracts and legal documents.

Crown Patent

An official document transferring land from the Crown (government) to an individual, entity, or corporation, granting them ownership.

Fee Simple

The highest level of land ownership, giving the owner complete control over the property, subject to government laws.

Life Estate

A legal interest in property that lasts for the duration of a person's life, allowing them to use the property but not sell it outright.