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

question 358

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 P4,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:

Species-Typical Behavior

Actions and patterns of behavior that are characteristic and expected of a particular species.

Arousal Desires

The yearning or longing for situations or stimuli that incite emotional or physiological excitement.

Autonomic Nervous System

The part of the nervous system that controls involuntary body functions such as heart rate and digestion.

Two-Factor Theory

A psychological model proposing that human emotions depend on a state of physiological arousal and a cognitive interpretation of that arousal to experience emotion.