Suppose a Firm Has a Variable Cost Function VC =

question 7

Multiple Choice

Suppose a firm has a variable cost function VC = 20Q with avoidable fixed cost of $50,000.For regulators,the first-best regulated price is ______; the second-best regulated price is ____.

• A) $80; $480
• B) $480; $105
• C) $80; $105
• D) $105; $80

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Definitions:

Protestant North America

Regions in North America where Protestant Christianity is a dominant religious influence, reflecting in the culture and society.

Caribbean Island

Islands in the Caribbean Sea, noted for their diverse cultures, histories of colonialism, and roles in the African diaspora.

England

A country in Europe that is part of the United Kingdom, known for its rich history, monarchy, and contributions to culture and science.

John Hawkins

A 16th-century English naval commander and slave trader, notable for his role in the early years of the Atlantic slave trade.