If Tiger Toys Faces a Demand Curve of P =

question 5

Multiple Choice

If Tiger Toys faces a demand curve of P = 85 - .25Q and a MC = ATC = 20, then the markup would be:

• A) $52.50.
• B) $20.00.
• C) $32.50.
• D) $65.00.

Describe the conditions for long-run equilibrium in price-taker markets and the concept of economic profit.

Identify the factors that determine the long-run supply curve's shape in different types of industries.

Understand the supply curve of a price-taker firm in the short run and its derivation.

Explain how market entry barriers affect long-run economic profit and market prices.

---

Definitions:

High

A state or condition that is above average in quantity, size, or intensity.

Differentiation

The process of distinguishing a product, service, or brand from competitors in ways that make it more appealing to the target market.

New Innovative Unit

A specialized group or department within an organization focused on developing innovative strategies, products, or services.

Market Mechanisms

The various processes and systems through which goods, services, and securities are traded in a market, determining prices through supply and demand.