The Diagram Below Shows the Market Demand Curve and the Cost

question 9

Multiple Choice

The diagram below shows the market demand curve and the cost curves for a single firm. FIGURE 12-6
-Refer to Figure 12-6. Suppose this firm is being regulated using a policy of average-cost pricing. In this case, economic profits to the firm are represented by the area

• A) P2P3ad
• B) P1P2bc
• C) 0P3aQ₁
• D) P2P3ab
• E) there are no economic profits.

---

Definitions:

Siblings

Brothers or sisters, including those related by birth, adoption, or marriage.

Assimilation

The process by which individuals or groups of differing ethnic heritage are absorbed into the dominant culture of a society.

Dominant Ethnic Group

Refers to the ethnic group in a society that has the most power, influence, and resources, often setting norms and values for the broader community.

Recent Immigrant

An individual who has moved to a new country from their place of origin relatively soon before the present time, adjusting to a new culture and environment.