Table 7-B
the Long-Run Total Cost Schedule of a Perfectly

question 53

Multiple Choice

Table 7-B
The long-run total cost schedule of a perfectly competitive firm that produces walnuts is as follows:
$\begin{array}{llcc} \text { Pounds of} & 1,000&2,000&3,000&4,000&5,000&6,000 \\ \text { Walnuts } &\\ \text { Total Cost} &\$3,000&\$5,500&\$7,500&\$8,000&\$11,000&\$15,000\\\end{array}$

-Refer to Table 7-B.If input costs are constant and there are no barriers to entry, the long-run equilibrium price of a pound of walnuts will be about:

• A)$2.00
• B)$2.20.
• C)$2.50.
• D)$2.75.
• E)$3.00

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Definitions:

Income Tax Expense

The amount of money that a company owes to the government for income earned during a fiscal period.

Accounts Payable Turnover Ratio

A liquidity metric that measures the rate at which a company pays off its suppliers by comparing net credit purchases to average accounts payable.

Working Capital

The disparity between an organization's immediate assets and liabilities, showcasing its short-term economic viability and effectiveness.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business.