Figure 14-2 Suppose a Firm Operating in a Competitive Market Has the Has

question 294

Multiple Choice

Figure 14-2
Suppose a firm operating in a competitive market has the following cost curves:

-Refer to Figure 14-2.If the market price is P3,in the short run the firm will earn

• A) positive economic profits.
• B) negative economic profits but will try to remain open.
• C) negative economic profits and will shut down.
• D) zero economic profits.

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Definitions:

Personal Qualities

Character traits or attributes that define an individual's personality and behavior.

Self-Knowledge

Insight and awareness of one's own personality, character, strengths, weaknesses, and desires.

Coercive Power

A form of authority that relies on the threat of force or punishment to compel obedience.

Reward Power

is a form of influence where an individual has control over the distribution of rewards, motivating others to follow directions or achieve goals.