Determine the Location of the Horizontal Asymptote If It Exists

question 51

Multiple Choice

Determine the location of the horizontal asymptote if it exists. Then determine whether the graph will cross the asymptote, and if so, where it crosses.

• A) y = 0; crosses at (±1, 0)
• B) y = 2; crosses at
• C) y = 2; does not cross
• D) No horizontal asymptote

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Definitions:

Perfect Competition

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information.

Perfect Competitor

A theoretical market structure where numerous small firms compete against each other without having any significant market power.

Output

The total amount of goods and services produced by an economy or a firm.

MC

Marginal Cost, which refers to the increase or decrease in the cost of producing one additional unit of a good or service.