Figure 13-10

question 411

Multiple Choice

Figure 13-10
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 13-10.If there are 500 identical firms in this market,what is the value of Q2?

• A) 12,000
• B) 60,000
• C) 240,000
• D) 300,000

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Definitions:

Merchandising Company

A business that purchases finished goods for the purpose of resale without further processing.

Credit Sales

Sales made on credit, where payment is received after the goods or services are delivered.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the efficiency of a company in producing and selling its products.

Operating Expenses

Costs associated with the day-to-day functioning of a business, such as rent, utilities, payroll, and materials, excluding the cost of goods sold.