Assume That the Long Run Average Cost for a Representative

question 97

Multiple Choice

Assume that the long run average cost for a representative firm in an industry is minimized at $10 per unit of output.Further assume that total industry output is X at a price of $10,and that each firm in this industry produces 0.2X at an average cost of $10.Under these conditions we would expect the market to have:

• A)a single firm.
• B)two firms.
• C)infinite number of firms.
• D)five firms.

---

Definitions:

Specificity Theory

A theory that proposes different sensory receptors are responsible for perceiving different types of stimuli, leading to specific sensations.

Sugar

A sweet-flavored substance derived from various plants, primarily sugar cane and sugar beet, used as a sweetener in foods and drinks.

Vinegar

A sour liquid formed by the fermentation of alcohol with acetic acid bacteria, used as a condiment and for preservation.

Kinesthetic Receptors

Kinesthetic receptors are sensory receptors located in muscles, tendons, and joints, providing information about body position and movement.