A Competitive Firm Has a Long-Run Total Cost Function C(y)=

question 3

Multiple Choice

A competitive firm has a long-run total cost function c(y) = 2y2 + 288 for y > 0 and c(0) = 0.Its long-run supply function is described as

• A)y = p/2 if p > 46, y = 0 if p < 46.
• B)y = p/2 if p > 51, y = 0 if p < 54.
• C)y = p/4 if p > 48, y = 0 if p < 48.
• D)y = p/4 if p > 51, y = 0 if p < 51.
• E)y = p/2 if p > 53, y = 0 if p < 43.

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Definitions:

Dollar-Euro Market

The foreign exchange market where the US dollar and the Euro are traded against each other.

Increased Demand

A situation where consumers are willing and able to purchase more of a good or service at each price level, leading to a shift rightward of the demand curve.

U.S. Buyers

Individuals or entities within the United States that purchase goods or services, either domestically or from international markets.

Demand for British Pounds

The desire or need by individuals, businesses, or countries to purchase or hold British currency for the purpose of investment or transactions.