Suppose That,in the Long Run,a Dairy's Variable Costs Are VC

question 27

Multiple Choice

Suppose that,in the long run,a dairy's variable costs are VC = 2Q² (where Q is the number of gallons of milk produced each day) ,its marginal cost is MC = 4Q and there is an avoidable fixed cost of $50 per day.In the long run there is free entry into the market.The long run market supply curve is:

• A) vertical at 5 gallons per day.
• B) horizontal at $20 per gallon.
• C) horizontal at $50 per gallon.
• D) horizontal at $100 per gallon.

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Fair and Accurate Credit Transactions Act

U.S. law enacted to enhance consumer protection and reduce the risk of fraud and identity theft by ensuring accurate credit information.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the involved parties to be enforceable.

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Main Purpose Test

In contract law, a test applied by the court to determine the real purpose of a guaranty contract.