Figure 10-2 ​

question 86

Multiple Choice

Figure 10-2
​
-In the short run, perfectly competitive firms will determine whether to continue producing the current output, reduce output, or increase output based on the relationship between

• A)price and average cost.
• B)price and marginal cost.
• C)marginal revenue and average cost.
• D)average revenue and average cost.

---

Definitions:

Lipase

An enzyme that catalyzes the hydrolysis of fats (lipids).

Muscular Tube

Refers to any tube-like structure in the body that consists of smooth or skeletal muscle, such as the esophagus or intestines.

Esophagus

Tubular organ that connects the pharynx to the stomach.

Throat

Part of the neck in front of the spinal column that contains the pharynx and larynx, allowing for passage of food to the esophagus and air to the lungs.