Refer to the Graph Shown, Which Depicts a Perfectly Competitive

question 153

Multiple Choice

Refer to the graph shown, which depicts a perfectly competitive firm. If the price of the product is $8 and the firm maximizes profit:

• A)the firm will earn economic profits of more than $330 per day.
• B)average cost of the product will be at the minimum possible level.
• C)output will be 100 units per day.
• D)the industry will be in long-run equilibrium.

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Definitions:

Trephination

Procedure in which holes were drilled in the skulls of people displaying abnormal behavior, presumably to allow evil spirits to depart their bodies; performed in the Stone Age.

Exorcism

A religious or spiritual ritual carried out to expel evil spirits or demons from a person or place believed to be possessed.

Atonement

The act of making amends or reparation for wrongdoing or guilt.

Cultural Relativism

The idea that a person's customs and practices should be interpreted by others based on the cultural context of that individual.