Suppose XYZ Corp

question 119

Multiple Choice

Suppose XYZ Corp.is a profit-maximizing firm that is producing and selling 1 billion disposable wooden chopsticks per month at a price of $0.04 per unit.Further,suppose market demand for this product is 1.5 billion units per month.What can we conclude about market structure in this case?

• A)This is not a perfectly competitive market because XYZ Corp.is small relative to the size of the industry.
• B)This is not a perfectly competitive market because XYZ Corp.is selling its product at a price that is not equal to marginal cost.
• C)This is a perfectly competitive market because there is freedom of entry and exit in the industry.
• D)This is a perfectly competitive market because the product is homogeneous.
• E)This is not a perfectly competitive market because XYZ Corp.is large relative to the size of the industry.

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Definitions:

Distal Convoluted Tubule

A portion of the nephron in the kidney where the final adjustments in urine composition are made, involving selective reabsorption and secretion.

Nephron Loop

A U-shaped part of the nephron in the kidney that extends from the proximal to the distal convoluted tubule, playing a crucial role in concentrating urine and conserving water.

Marginal Subcontracting Cost

The additional cost incurred for outsourcing a unit of production or service beyond the regular capacity or capability of the business.

Layoff Cost

The expenses associated with terminating employees, including severance pay, benefits continuation, and costs associated with changing the workforce.