The Figure Shows a Representative Firm in a Price-Taker Market

question 246

Multiple Choice

The figure shows a representative firm in a price-taker market. Which of the following is true regarding the situation depicted in the figure?

• A) This firm should shut down immediately.
• B) This firm is earning positive economic profit.
• C) This firm is able to cover its variable cost but not its total cost.
• D) All of the above are true.

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Definitions:

Androgen

A group of hormones that play a role in male traits and reproductive activity, present in both males and females.

Correlation Coefficient

A statistical measure that indicates the extent to which two variables change together.

Status and Resources

Refers to the standing or rank of individuals or groups in a society and the material or non-material assets they possess.

Opportunities Afforded

The possibilities or chances for something to happen, made available by specific conditions or situations.