(Figure: Interpreting Cost and Price Curves) Based on the Graph

question 307

Multiple Choice

(Figure: Interpreting Cost and Price Curves) Based on the graph, we can see that in this perfectly competitive industry, there

• A) are no economic profits because the market is saturated.
• B) are too many firms in the market, so firms are operating at a loss.
• C) is an incentive for more firms to enter the market.
• D) is no incentive for more firms to enter the market because existing firms are earning normal profit.

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Definitions:

Reinforcement

In behavioral psychology, a process by which a behavior is strengthened or increased in frequency by the outcome that follows it.

Parental Disapproval

The expression of dissatisfaction or objection by parents towards the choices or behaviors of their children.

Self-actualize

The process of realizing and fulfilling one's own potential and capabilities, often considered the highest level of psychological development.

Fixed-interval Reinforcement

A type of schedule in behavioral psychology where rewards are provided after set periods of time for responses or actions.