For a Particular Competitive Firm, the Minimum Value of Average

question 222

Multiple Choice

For a particular competitive firm, the minimum value of average variable cost (AVC) is $12 and is reached when 200 units of output are produced. For the same firm, the minimum value of average total cost (ATC) is $15 and is reached when 230 units of output are produced. Which of the following statements is correct?

• A)In the short run, the firm will shut down if the price of its product is $14.
• B)In the long run, the firm will shut down if the price of its product is $11.
• C)For this firm, the minimum value of variable cost (VC) is $2,400.
• D)If the firm's fixed cost (FC) amounts to $500, then the firm cannot earn a positive profit unless the price of its product exceeds $16.

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Definitions:

Lev Vygotsky

A psychologist from Russia recognized for his contributions to understanding cognitive growth, especially his theory on the Zone of Proximal Development.

Lawrence Kohlberg

A psychologist known for his theory of moral development, which suggests that individuals progress through stages of moral reasoning as they grow.

Zygotes

The initial cell formed when a new organism is produced by the combination of male and female reproductive cells.

Epigenetics

The study of changes in organisms caused by modification of gene expression rather than alteration of the genetic code itself.