Refer to the Information Provided in Figure 12

question 189

Multiple Choice

Refer to the information provided in Figure 12.5 below to answer the question(s) that follow. Figure 12.5
-Refer to Figure 12.5. Hula hoops are produced in a perfectly competitive market. This hula hoop firm is currently producing and selling 100 hula hoops per week. Which of the following is true?

• A) Society would be better off if more hula hoops were produced because at the current level of production price is greater than marginal cost.
• B) Society would be better off if fewer hula hoops were produced because if this firm reduced its production, its profits would increase.
• C) Hula hoop production is at the efficient level because ATC is minimized.
• D) Fewer resources should be devoted to hula hoop production because ATC is less than price.

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Definitions:

Receptors

Proteins on the surface of cells that bind to specific molecules, triggering a response within the cell.

Muscle Fiber

A single muscle cell, known for its elongated shape, which contracts to produce bodily movements.

Action Potential

A temporary reversal of an electric polarization of the membrane of a nerve cell or muscle cell.

Presynaptic Terminal

The end of a neuron from which neurotransmitters are released to communicate with another neuron at a synapse.