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

question 152

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.The average total cost of producing 6,000 pounds of walnuts in the long run is:

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

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Definitions:

Buyer Surplus

The difference between the maximum amount a consumer is willing to pay for a good or service and the actual amount paid.

Seller Surplus

The difference between the amount sellers are actually paid for a good or service and the minimum amount they would be willing to accept, reflecting gains from trade.

Unconsummated Transaction

A transaction that has been initiated but not completed or finalized, often due to unmet conditions or mutual agreement.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization.