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:

Sample Proportion

The fraction or percentage of individuals or items in a subset of a population that meet a specified criterion, used to estimate the true proportion.

Sample Proportions

A statistic that represents the fraction of individuals in a sample that possess a certain attribute or characteristic.

Control Limits

Boundaries that define the range of acceptable variation in a process.

Centerline

In the context of statistical process control, it refers to the midpoint or average of the data on a control chart, used to assess process stability.