Figure 8.9 -Refer to Figure 8.9.If This Is a Constant-Cost Industry, the Constant-Cost

question 162

Multiple Choice

Figure 8.9
-Refer to Figure 8.9.If this is a constant-cost industry, the market price in the long-run equilibrium is

• A)$5
• B)$14
• C)$15
• D)$20

---

Definitions:

Diminishing Marginal Utility

The economic principle stating that as a person consumes more of a good, the satisfaction (utility) gained from consuming each additional unit decreases.

Indifference Curves

Graphs representing combinations of different goods that provide an individual with the same level of satisfaction, showing consumer preferences.

Total Utility

The cumulative satisfaction or value that a person derives from consuming a certain quantity of goods or services.

Indifference Curve

A graph showing combinations of goods between which a consumer is indifferent, representing equal levels of satisfaction.