Figure 14-4 Suppose a Firm Operating in a Competitive Market Has the Has

question 561

Multiple Choice

Figure 14-4
Suppose a firm operating in a competitive market has the following cost curves:
-Refer to Figure 14-4. When price rises from P3 to P4, the firm finds that

• A)fixed costs decrease as output increases from Q3 to Q4.
• B)it can earn a positive profit by increasing production to Q4.
• C)profit is still maximized at a production level of Q3.
• D)average revenue exceeds marginal revenue at a production level of Q4.

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Definitions:

Simple Squamous Epithelium

A single layer of flat cells lining surfaces where diffusion or filtration occurs, such as the alveoli in the lungs.

Alveoli

Tiny air sacs within the lungs where the exchange of oxygen and carbon dioxide between the air in the lungs and the blood in the capillaries takes place.

Diffusion

The movement of particles from an area of higher concentration to an area of lower concentration.

Contractions of the Stomach

Rhythmic contractions of the stomach muscles that help in mixing and breaking down food as part of the digestive process.