In the Short Run for a Particular Market, There Are

question 494

Multiple Choice

In the short run for a particular market, there are 300 firms. Each firm has a marginal cost of $30 when it produces 200 units of output. One point on the market supply curve is

• A) quantity = 100,000; price = $30.
• B) quantity = 300; price = $30.
• C) quantity = 600,000; price = $30.
• B) quantity = 600,000; price = $90,000.

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Definitions:

Capital Allocation Line

A line representing the risk-return trade-off of different portfolios, showing the highest expected return for a given level of risk.

Standard Deviation

A measure of the dispersion or variation in a set of values, indicating how much the values differ from the mean of the set.

Complete Portfolio

A portfolio that includes both risky assets and a risk-free asset, optimizing the balance between risk and return.