Table 85 -Refer to Table 8

question 163

Multiple Choice

Table 8.5
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { of Output }\end{array} & \begin{array} { c } \text { Total } \\\text { Revenue } ( \$ ) \end{array} & \begin{array} { c } \text { Total } \\\text { Cost } ( \$ ) \end{array} \\\hline 0 & 0 & 50 \\\hline 10 & 50 & 70 \\\hline 20 & 100 & 90 \\\hline 30 & 150 & 120 \\\hline 40 & 200 & 200 \\\hline 50 & 250 & 325 \\\hline\end{array}$$
-Refer to Table 8.5,which shows the output supplied by a firm,its total revenue,and its total cost of production.It represents a firm in the _____

• A)long run, because there is no fixed cost.
• B)short run, because there is no equilibrium.
• C)long run, because there is an equilibrium level of output.
• D)short run, because a firm incurs fixed cost.
• E)long run, because there is a normal profit.

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Definitions:

Histogram

A graphical representation of data where the frequency of the variables is represented by bars of different heights.

Rules Of Thumb

Simple, practical guidelines or principles, typically based on experience rather than theory, used to make judgments and decisions.

Heuristics

Mental shortcuts or rules of thumb that simplify decision-making processes, often leading to rapid judgements or problem-solving strategies.

Displacement

A defense mechanism where mind shifts emotional impulses from a real object to a safer substitute target.