Figure 14-1 Suppose That a Firm in a Competitive Market Has the Has

question 274

Multiple Choice

Figure 14-1
Suppose that a firm in a competitive market has the following cost curves:
-Refer to Figure 14-1. If the market price falls below $4.50, the firm will earn

• A)positive economic profits in the short run.
• B)negative economic profits in the short run but remain in business.
• C)negative economic profits in the short run and shut down.
• D)zero economic profits in the short run.

---

Definitions:

Groundwater Contamination

Groundwater contamination occurs when pollutants, from sources like industrial waste, agricultural chemicals, or improper waste disposal, percolate into natural groundwater sources, making it unsafe for consumption and the environment.

Hazardous Waste

Waste that poses substantial or potential threats to public health or the environment due to its toxicity, chemical reactivity, flammability, or other characteristics.

Residential Wells

Small-scale water extraction facilities located on private property used primarily to supply water to individual homes or small communities.

Aquatic Ecosystem

A water-based environment, including oceans, rivers, lakes, and wetlands, where plants and animals interact with the physical and chemical features.