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:

Agent

A person or entity authorized to act on behalf of another person or entity, known as the principal, in business transactions or legal matters.

Employment

An agreement between an employer and an employee where the employee provides labor or services on a regular basis in exchange for compensation.

Principal

A principal can refer to the amount of money being borrowed or the party managing a group, depending on the context.

Negligently Left

Describes a situation where an individual or entity fails to take proper care in doing something, resulting in something being left behind or unattended in a manner that could cause harm or loss.