The Diagram Below Shows the Short- Run Cost Curves for 3

question 52

Multiple Choice

The diagram below shows the short- run cost curves for 3 perfectly competitive firms in the same industry.
FIGURE 9- 6
-Refer to Figure 9- 6.Given that Firms A,B and C are in the same industry,is this industry in long- run equilibrium?

• A)Yes,because all 3 firms are producing at their minimum average total cost.
• B)No,because Firm A is not producing at a profit- maximizing level of output.
• C)Yes,because each of the 3 firms is operating at its minimum efficient scale.
• D)No,because if the industry were in equilibrium,all 3 firms would be earning zero economic profits.
• E)Yes,because P = MC = MR for each of the 3 firms.

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Definitions:

Social Loafing

The tendency for individuals to exert less effort when working in a group than when working alone.

Group Behavior

The actions, interactions, and dynamics of individuals when they are part of a group, influenced by the collective's norms and goals.

Team Suggestions

Team Suggestions refer to the ideas or proposals put forward by the members of a team aimed at solving a problem, improving efficiency, or enhancing teamwork.

Integrated Involvement

Closeness achieved through tasks and activities.