Use the Following Diagram Depicting a Dominant Firm Market to Answer

question 32

Multiple Choice

Use the following diagram depicting a dominant firm market to answer the following questions:

-In equilibrium, how many units will the dominant firm supply?

• A) 45 units
• B) 60 units
• C) 90 units
• D) 135 units

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Definitions:

Price Floor

A government-imposed minimum price for goods or services, intended to prevent prices from falling below a certain level.

Market-clearing Price

The price at which the quantity demanded by buyers equals the quantity supplied by sellers, eliminating any surplus or shortage in the market.

Surplus

The condition in which the quantity of a good or service supplied exceeds the quantity demanded at the current price.

Foreign Currency

Currency used in a country other than one's own, involved in international trade, investments, and travel.