Exhibit 10-1 A Perfectly Competitive Producer Has the Following Short-Run Average Cost

question 119

Multiple Choice

Exhibit 10-1
A perfectly competitive producer has the following short-run average cost curve and marginal cost curve:
SR AC = 2Q + 3
MC = 4Q + 3
where costs are measured in dollars and Q represents the firm's output in units.
-The firm whose short-run cost curves are given in Exhibit 10-1 has a long-run fixed cost of

• A)$0.
• B)$2.
• C)$3.
• D)$4.

---

Definitions:

Medial Temporal Lobe

A region of the brain crucial for the formation of new memories and associated with the limbic system.

State-dependent Memory

A phenomenon where a person's ability to recall information is improved when in the same state of consciousness as when the memory was formed.

Encoding

The method through which data is converted into a form that can be retained in memory.

Recall

The process of retrieving information from memory that has been previously encoded and stored.