Use the Figure Below to Answer the Following Question

question 12

Multiple Choice

Use the figure below to answer the following question. Figure 11.4.4
-Refer to Figure 11.4.4,which shows the cost curves for a perfectly competitive firm.If all firms in the market have the same cost curves and the price is $16 per unit,

• A)the market is in long-run equilibrium.
• B)in the long run,firms will leave this market.
• C)in the long run,the price will fall as new firms enter the market.
• D)the firm is making zero economic profit.
• E)none of the above

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Definitions:

Total Compensation

The complete package of wages, benefits, bonuses, and any other form of compensation given to employees for their service.

Take-Home Pay

The amount of income left after deductions such as taxes, social security, and other withholdings have been subtracted from the gross pay.

Principal-Agent Problem

A dilemma in economics where one party (the agent) is tasked to make decisions on behalf of another party (the principal), leading to potential conflicts of interest.

Employer-Employee Relationship

The formal association between a company or organization and its workers, governed by an employment contract and labor laws.