Figure 14-9

question 461

Multiple Choice

Figure 14-9
In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive market, and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firms.
-Refer to Figure 14-9. If there are 100 identical firms in this market, what is the value of Q2?

• A)10,000
• B)20,000
• C)40,000
• D)80,000

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Definitions:

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the average cost per unit of output.

Total Cost

The complete cost of production, including both fixed and variable costs, incurred by a firm in producing a specific amount of output.

Variable Cost

Expenses that fluctuate based on the volume of goods or services a company generates, including materials and labor.

Quantity

Quantity refers to the amount or number of a material or immaterial entity that is measured or quantifiable.