Equilibrium Price Is $22 in a Perfectly Competitive Market

question 92

Multiple Choice

Equilibrium price is $22 in a perfectly competitive market. For a perfectly competitive firm, MR = MC at 200 units of output. At 200 units, ATC is $23, and AVC is $18. The best policy for this firm is to __________ in the short run. Also, this firm earns __________ of __________ if it produces and sells 200 units. Finally, the difference between total variable cost and total fixed cost for this firm is __________.

• A)continue to produce, profits, $1800, $3,600
• B)shut down, losses, $200, $3,600
• C)continue to produce, losses, $200, $2,600
• D)shut down, profits, $200, $1,800

Recognize the barriers to transferring technologies from IACs to DVCs.

Evaluate the concept of the vicious circle of poverty and strategies to overcome it.

Understand factors influencing economic growth, including the will to develop and investment types.

Know the agencies involved and methods used for economic development in DVCs.

---

Definitions:

Small Request

A technique in persuasion and social psychology that involves asking for a minor initial request in order to increase the likelihood of compliance with a larger request later.

Agree

To consent or concur in opinion, feeling, or position, often used in contexts where individuals are in harmony or acceptance with others or decisions.

Central Route

A persuasion method that focuses on logic, facts, and the content of messages to influence beliefs or attitudes.

Social Conformity

Social conformity is the act of matching attitudes, beliefs, and behaviors to group norms or expectations.