Suppose That,in the Long Run,a Dairy's Variable Costs Are

question 35

Multiple Choice

Suppose that,in the long run,a dairy's variable costs are (where Q is the number of gallons of milk produced each day) ,its marginal cost is and there is an avoidable fixed cost of $50 per day.In the long run there is free entry into the market.What is the dairy's total cost function?

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Definitions:

Tax Per Unit

A fixed amount of tax imposed on a product or service, regardless of its price.

Excise Tax

A tax applied to specific goods, services, or transactions, usually with the intent of discouraging their use or generating revenue.

Tax Per Unit

A specific tax levied on a product based on the number of units purchased, not the value of the purchase.

Efficiency Loss

The loss of economic efficiency that can occur when equilibrium for a good or a service is not achieved or is not achievable.