The Diagram Below Shows the Market Demand Curve and the Cost

question 11

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,

• A) the result is as close to the competitive outcome as possible.
• B) the result is allocatively efficient because economic profits are zero.
• C) the result is allocatively inefficient because price exceeds marginal cost.
• D) the result is allocatively inefficient because the marginal cost curve is downward sloping.
• E) the level of output is too low, but the price is allocatively efficient.

---

Definitions:

Concussions

A type of traumatic brain injury caused by a bump, blow, or jolt to the head, leading to temporary loss of normal brain function.

Skill Memories

Long-term memories related to the performance of particular types of action, often acquired through repetition and practice.

Cerebellum

Hindbrain region that coordinates voluntary movements.

Motor Activity

Physical actions and movements generated by the muscles and nervous system of an organism.