The Table Below Shows the Total Cost of Producing Different

question 11

Multiple Choice

The table below shows the total cost of producing different units of a commodity. Table 21.2
Refer to Table 21.2.The average fixed cost of the first unit of output is:

• A)$46.
• B)$98.
• C)$100.
• D)$50.
• E)$140.

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Definitions:

Oligopoly

A market structure characterized by a small number of firms that dominate the market, leading to limited competition and potentially higher prices for consumers.

Perfectly Competitive

describes a market structure where there are many buyers and sellers, products are homogeneous, and there are no barriers to entry or exit, leading to optimal distribution and resource allocation.

Contestable Markets

Markets in which entry and exit are easy enough to hold prices to a competitive level even if no entry actually occurs.

Oligopolistic Firms

Companies operating within an oligopoly, a market structure characterized by a small number of firms controlling a large market share, often leading to limited competition.