-According to the Above Figure,if the Price of X Is

question 27

Multiple Choice

-According to the above figure,if the price of X is $5,what combination of X and Y will a utility-maximizing consumer choose?

• A)80X,20Y
• B)120X,620Y
• C)120X,250Y
• D)200X,620Y
• E)none of the above

---

Definitions:

Economic Profits

The difference between a firm's total revenues and its total opportunity costs.

Barriers to Entry

Economic, procedural, regulatory, or technological factors that obstruct or limit the possibility of new competitors entering an industry.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments and the market to stabilize at a point where supply equals demand.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and products that are close substitutes, leading to price competition.