If the Demand Curve Facing the Acme Awl Company Is

question 67

Multiple Choice

If the demand curve facing the Acme Awl Company is tangent to its average total cost curve, all of the following statements are true except one.Which is the exception?

• A)Economic profit is zero.
• B)A normal profit exists.
• C)Marginal cost must exceed marginal revenue.
• D)Acme has excess capacity.
• E)Firms have no incentive to enter or leave this industry.

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Definitions:

Dissociation

A psychological condition in which there is a disconnection or lack of continuity between thoughts, memories, surroundings, actions, or identity.

Simultaneously

Occurring, operating, or done at the same time.

Susceptibility

The likelihood or predisposition of an individual to be affected by a certain disease or condition.

Hypnosis

A trance-like state characterized by increased focus, concentration, and suggestibility, often used for therapeutic purposes.