Refer to the Figure Below

question 81

Multiple Choice

Refer to the figure below. If the market for doughnuts is perfectly competitive, then assuming this firm can earn enough revenue to cover its variable cost, it should produce:

• A)50 doughnuts per day.
• B)the quantity of doughnuts at which average total cost equals the market price.
• C)the quantity of doughnuts at which marginal cost equals the market price.
• D)the quantity of doughnuts at which average total cost is minimized.

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Definitions:

Outbreak

The sudden occurrence of a disease or an increase in the number of cases among a population.

Consequential Damages

Losses that do not flow directly from an act but only from some of the consequences or results of the act.

Lost Profits

Potential earnings that a business did not realize due to a breach of contract, negligence, or other wrongful acts.

Unconscionable

Referring to an agreement or action that is excessively unfair or unjust, often to the degree that it is deemed unenforceable in a court of law.