Table 71 Table 71 Shows the Short-Run Cost Data of a Perfectly Competitive

question 197

Multiple Choice

Table 7.1
$$\begin{array} { | c | c | c | } \hline \text { Quantity } & \begin{array} { c } \text { Total Cost } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Variable Cost } \\\text { (dollars) }\end{array} \\\hline 0 & \$ 1000 & \$ 0 \\\hline 100 & 1360 & 360 \\\hline 200 & 1560 & 560 \\\hline 300 & 1960 & 960 \\\hline 400 & 2760 & 1760 \\\hline 500 & 4000 & 3000 \\\hline 600 & 5800 & 4800 \\\hline\end{array}$$ Table 7.1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units.
-Refer to Table 7.1.The firm will not produce in the short run if the output price falls below

• A) $8.
• B) $4.
• C) $3.20.
• D) $2.80.

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Definitions:

Costly Temptations

Unnecessary expenses or indulgences that can detract from long-term financial goals and stability.

Altruistic Behaviors

Acts motivated by the intention to help or benefit another individual or group of individuals without expectation of benefit for oneself.

Impulse Buying

The act of purchasing items on the spur of the moment without premeditation, often triggered by emotions or external stimuli.

Shelving Costs

Expenses incurred by businesses for the display and storage of products on shelves in retail stores or warehouses, as part of managing inventory and maximising product exposure to consumers.