Use the Above Table and Assume a Fixed Cost of

question 33

Multiple Choice

$$\begin{array} { c c c c c c c } & \text { Variable } & \text { Total } & & & & \text { Marginal } \\\text { Output } & \text { Cost } & \text { Cost } & \text { AFC } & \text { AVC } & \text { ATC } & \text { Cost } \\1 & 400 & & & & & \\2 & 700 & & & & & \\3 & 1,000 & & & & & \\4 & 1,400 & & & & &\end{array}$$ Use the above table and assume a fixed cost of $1000.
-At an output of 4,ATC is

• A)$250.
• B)$400.
• C)$600.
• D)$800.
• E)$1,000.

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Definitions:

Credible Threat

A declaration or signal that one will take some negative action if conditions are not met, and it is believable and capable of being executed.

Oligopolistic Situation

A market condition where a few companies have the majority of market share and control over pricing.

Barriers to Entry

Factors that make it difficult for new firms to enter a market, often leading to reduced competition.

Dominant Strategies

Strategies in game theory that are preferable regardless of the opponent's actions, leading to a stable solution.