Company XYZ has zero fixed costs and its average variable cost of cases is given by...

 

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Company XYZ has zero fixed costs and its average variable cost of cases is given by AVC=5Q+ 600, the marginal cost at an output level of 15 units is: a. $600 b. $750 c. $625 d. $500 e. $550 In a competitive market the equilibrium price is determined: a. so as to cover the costs of the potential firms b. at the intersection of the market demand and supply curves c. at the intersection of the firm's demand and marginal cost curves d. at the intersection of the firm's demand and the market supply curves so as to cover the costs of the firms currently in the industry e. Company XYZ has zero fixed costs and its average variable cost of cases is given by AVC=5Q+ 600, the marginal cost at an output level of 15 units is: a. $600 b. $750 c. $625 d. $500 e. $550 In a competitive market the equilibrium price is determined: a. so as to cover the costs of the potential firms b. at the intersection of the market demand and supply curves c. at the intersection of the firm's demand and marginal cost curves d. at the intersection of the firm's demand and the market supply curves so as to cover the costs of the firms currently in the industry e.

Answer rating: 100% (QA)

1 Correct Answer B 750 Working note AVC 5Q 600 TC Q5Q600 5Q2 60... View the full answer