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

question 5

Multiple Choice

A firm has a long-run cost function, C(q) = 8q² + 72. In the long run, this firm will supply a positive amount of output, as long as the price is greater than

• A) $48.
• B) $104.
• C) $96.
• D) $24.
• E) $53.

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Definitions:

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, often involving a risk or uncertainty.

Probability

Measurement of a degree of uncertainty, expressed as a number between 0 and 1.

Framing

The way information is presented or structured, which can influence perception and decision-making.

Losses

The negative outcomes or reductions experienced in various contexts, such as finance, personal well-being, or competitions.