At an Output Level of 500 Units, ATC = $10

question 17

Multiple Choice

At an output level of 500 units, ATC = $10, AVC = $5, MR = $3 and MC = $3, the result for the perfectly competitive firm will be:

• A) making a loss of ($5 - $3) 500 = $1000.
• B) a decrease in output, so MC > MR.
• C) making a short-run loss of $2500.
• D) an increased output, so MR > MC.

---

Definitions:

Vessel Element

Cell that joins with others to form a major conducting tube found in xylem.

Guard Cells

Specialized cell pairs in plant leaves that control the opening and closing of stomata to regulate gas exchange and water loss.

Parenchyma

The functional tissues in an organ or plant, made up of cells that perform the specific function of that organ or structure.

Sieve-Tube Member

A type of elongated cell in the phloem of flowering plants, responsible for the transport of nutrients, particularly sucrose, throughout the plant.