Use the Figure Below to Answer the Following Questions

question 78

Multiple Choice

Use the figure below to answer the following questions.

Figure 12.4.3
-Refer to Figure 12.4.3 which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market.Firms are

• A)making an economic profit, and some firms leave the market.Market supply decreases.
• B)making an economic profit, and some firms enter the market.Market supply increases.
• C)incurring an economic loss, and some firms leave the market.Market supply decreases.
• D)incurring an economic loss, and some firms enter the market.Market supply increases.
• E)loss, but since they are covering average variable cost, no one will exit the market in the long run.

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Definitions:

Standard Deviation

An indicator of how dispersed or spread a set of values is, showing the degree to which these values deviate from the average.

Genius

An exceptional intellectual or creative power or other natural ability.

Water Consumption

The volume of water utilized by individuals, industries, agriculture, or other entities over a specific period.

National Center for Health Statistics

A U.S. government agency that compiles statistical information to guide actions and policies to improve the health of the American people.