The Demand Curve for the Output of a Certain Industry

question 39

Multiple Choice

The demand curve for the output of a certain industry is linear; q = A - Bp.There are constant marginal costs of C.For all values of A, B, and C such that A > 0, B > 0, and 0 < C < A/B,

• A)if the industry is monopolized, prices will be exactly twice as high as they would be if the industry were competitive.
• B)if the industry is competitive, output will be exactly twice as great as it would be if the industry were monopolized.
• C)if the industry is monopolized, prices will be more than twice as high as if the industry is competitive.
• D)if the industry is monopolized, output will be more than half as large as it would be if the industry were competitive.
• E)None of the above.

Understand how to construct a confidence interval for a population proportion.

Grasp the relationship between sample size, confidence level, and margin of error.

Understand the concepts of standard error and margin of error.

Learn how to apply confidence intervals to real-world scenarios.

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Definitions:

Average Variable Cost

The total variable costs divided by the quantity of output produced, representing the variable cost incurred to produce each unit of output.

Marginal Cost

The leap in all-encompassing expenses associated with the production of an additional unit of a product or service.

Average Total Cost

The cost of producing everything, when divided by the number of units made, signifies the cost for each unit produced.

Average Variable Costs

The total variable costs of production divided by the quantity of output produced, representing the variable costs per unit of output.