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

question 33

Multiple Choice

A competitive firm has a long-run total cost function c(y) = 5y2 + 1,125 for y > 0 and c(0) = 0.Its long-run supply function is described as

• A)y = p/5 if p > 148, y = 0 if p < 148.
• B)y = p/10 if p > 150, y = 0 if p < 150.
• C)y = p/10 if p > 153, y = 0 if p < 153.
• D)y = p/5 if p > 153, y =0 if p < 165.
• E)y = p/5 if p > 155, y = 0 if p < 145.

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Definitions:

Factors of Production

are the inputs necessary for the creation of goods and services, which typically include land, labor, capital, and entrepreneurship.

Economic Function

The role or purpose that an economic activity serves in the broader economy, contributing to overall economic performance.

Profits and Losses

Financial gains achieved when revenue exceeds expenses, or deficits incurred when expenses outstrip revenue.

Real Assets

Physical or tangible assets that have intrinsic value, such as real estate, commodities, or natural resources.