The Following Table Applies to a Purely Competitive Industry Composed

question 65

Multiple Choice

The following table applies to a purely competitive industry composed of 100 identical firms. $\begin{array}{lcl}Quantity&&Quantity\\Demanded &Price &Supplied\\\hline400,000 & \$ 5 & 800,000 \\500,000 & 4 & 700,000 \\600,000 & 3 & 600,000 \\700,000 & 2 & 500,000 \\800,000 & 1 & 400,000\end{array}$ Refer to the table.If each of the 100 firms in the industry is maximizing its profit,each must have a marginal cost of:

• A) $5.
• B) $4.
• C) $3.
• D) $2.

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Definitions:

Hyperreal

Baudrillard’s belief that people’s perceptions, as defined by media, lead to the sense of a simulated reality.

Simulation

The act of imitating the operation of a real-world process or system over time, often used for analysis, training, or entertainment.

Simulated Reality

suggests a hypothetical environment that is artificially created to emulate the real world in a convincing manner, often discussed in the context of technology and philosophy.

Manufacture Consent

The process by which powerful entities, such as the media or government, create a consensus among the public through manipulation, often to serve their own interests.