The Graph Above Shows Cost Curves for a Perfectly Competitive

question 42

Multiple Choice

The graph above shows cost curves for a perfectly competitive firm.If market price is $3,how much profit will the firm earn?

• A)$200
• B)-$200
• C)$400
• D)-$400

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Definitions:

Downcutting

A process by which a stream or river erodes its bed, deepening it over time, often leading to the formation of canyons or valleys.

Dynamic Equilibrium

A condition of a system in approximate steady state where there is a balanced inflow and outflow of materials.

Graded Stream

A stream in equilibrium, showing a balance between its capacity to transport sediment and the amount of sediment supplied to it, thus with no overall erosion or deposition of sediment.

Meander

A sinuous curve or bend in the course of a stream or river.