Table 10.4 Table 10.4 lists estimated revenues and costs (per week)for plastic vials (100 vials per box)for the Victoria Biological Supplies Company.Victoria sells plastic vials to university and private research laboratories.
-Refer to Table 10.4.Based on the data in the table, which of the following statements is true?
A)The table summarises Victoria's short-run, rather than long-run, market for plastic vials.
B)Victoria could be either a monopolistically competitive or a perfectly competitive firm.
C)Victoria should shut down temporarily.
D)Victoria should advertise more in order to increase the demand for plastic vials.

Question

Table 10.4  Table 10.4 lists estimated revenues and costs (per week)for plastic vials (100 vials per box)for the Victoria Biological Supplies Company.Victoria sells plastic vials to university and private research laboratories.
-Refer to Table 10.4.Based on the data in the table, which of the following statements is true?
A)The table summarises Victoria's short-run, rather than long-run, market for plastic vials. 
B)Victoria could be either a monopolistically competitive or a perfectly competitive firm. 
C)Victoria should shut down temporarily. 
D)Victoria should advertise more in order to increase the demand for plastic vials.

Quizplus · Accepted Answer

The table only presents estimates for the short run, indicating that Victoria's revenues and costs are subject to change in the long run. Furthermore, we cannot determine whether Victoria is a perfectly competitive or monopolistically competitive firm based on the information provided. There is no indication that Victoria should shut down temporarily or advertise more to increase demand.

Table 104 Table 10