If $S T C = 200 + 2 q + 4 q ^ { 2 }$

question 19

Multiple Choice

If $S T C = 200 + 2 q + 4 q ^ { 2 }$ , $S M C = 2 + 8 q$ , where q is output and all fixed costs are sunk, the firm's short-run supply curve is

• A) \(s ( P ) = 2 + 8 q\) for P?2 and zero otherwise.
• B) \(s ( P ) = \left\{ \begin{array} { l l }
• 0 & P < 2 \\
• 0.125 P - 0.25 & P \geq 2
• \end{array} \right.\)
• C) \(s ( P ) = 2 + 8 q\) for P?0 and zero otherwise.
• D) \(s ( P ) = \left\{ \begin{array} { l l }
• 0 & P < 0 \\
• 0.125 P - 0.25 & P \geq 0
• \end{array} \right.\)

---

Definitions:

Present Value

The current assessment of a future cash sum or cash flow streams, discounted at a defined rate of return.

Coupon

The interest payment made to bondholders, typically expressed as an annual percentage of the bond's face value.

Coupon Bond

A type of bond that offers periodic interest payments to the holder through fixed "coupons" and the return of the principal at maturity.

Yield To Maturity

The total return expected on a bond if held until its maturity date, including both interest payments and capital gains.