Imagine That You Fill a Shallow Tray with Water and Place

question 10

Multiple Choice

Imagine that you fill a shallow tray with water and place a drop of red ink in one end of the tray and a drop of green ink in the other end. Which of the following is TRUE at equilibrium?

• A) The red and green ink do not mix at all.
• B) The concentration of each ink is higher at one end of the tray than at the other end.
• C) The red ink is uniformly distributed in one half of the tray, and the green ink is uniformly distributed in the other half of the tray.
• D) No predictions can be made without knowing the size of the ink molecules.
• E) The red and green inks are both uniformly distributed throughout the tray.

---

Definitions:

ATC

Average Total Cost; it's the total cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

Variable Cost

Expenses that change in proportion to the production volume.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, reflecting the true profitability of a business.

TR

Total revenue, representing the total sales income a firm receives from selling its goods or services.