-In Short-Run Equilibrium,the Perfectly Competitive Firm of Figure 9-3 Will

question 115

Multiple Choice

-In short-run equilibrium,the perfectly competitive firm of Figure 9-3 will charge

• A)$5
• B)$7
• C)$8
• D)$10
• E)more than $10

---

Definitions:

Elastic

Elastic refers to the responsiveness of the quantity demanded or supplied of a good or service to a change in its price, with high elasticity meaning significant responsiveness.

Average Variable Cost

The cost variable per unit of output produced, calculated by dividing total variable costs by the quantity of output.

Economic Losses

The reduction in financial wealth, goods, or services that results from an event or decision.

Long Run Market Supply Curve

A curve showing the relationship between the price of a good and its supply over a longer period, when all input factors can be varied.