The Diagram Below Shows the Market Demand Curve and the Cost

question 75

Multiple Choice

The diagram below shows the market demand curve and the cost curves for a single firm.
FIGURE 12- 6
-Refer to Figure 12- 6.Suppose this firm is being regulated using a policy of marginal- cost pricing.In this case,

• A)the result is allocatively inefficient because the firm is suffering losses.
• B)allocative efficiency is achieved because price equals marginal cost.
• C)the result is allocatively inefficient because the marginal cost curve lies below the ATC curve.
• D)allocative efficiency is achieved because profits are maximized.
• E)the result is allocatively inefficient because the firm is earning profits.

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How attractive or beautiful a person's physical characteristics are perceived to be.

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A characteristic of experiencing rapid and intense emotional changes or mood swings.

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A habitual feeling of disdain or scorn towards others or their actions.

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A personality trait that refers to an individual's ability to adjust their behavior to fit the current situation.