Bob Runs a Pedicure Business in a Perfectly Competitive Industry

question 148

Multiple Choice

Bob runs a pedicure business in a perfectly competitive industry.He knows that he will break even if the price of pedicures is $15 but that he will have to shut down if the price is $11 or lower.If the market demand in the industry is P = 30 - (0.2) Q and the market supply is P = (0.2) Q,in the short run,Bob will:

• A)shut down since he cannot cover any of his variable costs.
• B)produce but make zero economic profit.
• C)produce with a loss since he is operating below his break-even level.
• D)shut down,although he is making a positive economic profit.

---

Definitions:

Eating Disorders

A group of psychological disorders characterized by abnormal or disturbed eating habits, which can significantly impact one's health and daily functioning.

Trigger Eating

The act of consuming food in response to specific emotional triggers or cues rather than hunger, often linked to stress or emotional distress.

Nutritional Foods

Edibles that provide essential nutrients necessary for maintaining health and preventing diseases.

Junk Food

Food containing a high calorie count but lacking in essential nutrients, usually rich in sugar, fat, and sodium.