The Critical Point $( 0 , - 2 )$ Of the System

question 7

Multiple Choice

The critical point $( 0 , - 2 )$ of the system $x ^ { \prime } = x ^ { 3 } - y ^ { 2 } + 4 , y ^ { \prime } = 5 x$ is a

• A) stable node
• B) unstable node
• C) stable spiral point
• D) unstable spiral point
• E) saddle point

Recognize the role of price, average total cost, and marginal cost in determining a firm's profitability.

Distinguish between the short run and long run in perfectly competitive markets.

Understand the implications of homogeneous products in perfectly competitive markets.

Recognize the supply curve in the context of a perfectly competitive firm's cost curves.

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Definitions:

Raw Materials Inventory

Goods and materials that are used in the manufacturing process to be converted into finished products, tracked in accounts as a current asset.

FOH Volume Variance

The difference between the budgeted and actual volume of production, affecting fixed overhead costs.

FOH Budget Variance

The difference between the actual factory overhead costs and the budgeted or standard overhead costs allocated for a period.

Labor Efficiency Variance

The difference between the actual hours worked and the expected hours worked, valued at the standard labor rate.