The Figure Below Shows the Supply and the Demand for a Good

question 32

Multiple Choice

The figure below shows the supply and the demand for a good (left) and the cost curves of an individual firm in this market (right) . Assume that all firms in this market, including the potential entrants, have identical cost curves. Initially, the market is in equilibrium at point A.

-Refer to the figure above.At the equilibrium A,each firm in the market earns ________ and there will be ________.

• A) positive economic profit; entries of new firms
• B) negative economic profit; exit of existing firms
• C) zero economic profit; both entry and exit of firms
• D) zero accounting profit; entries of new firms

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Definitions:

CNS

The Central Nervous System (CNS) consists of the brain and spinal cord, functioning as the control center for processing and sending commands to the body.

Ganglia

Clusters of neuron cell bodies located outside the central nervous system, which act as relay points and intermediaries in transmitting neural signals.

Cnidarian Nerve Net

A simplistic and diffuse network of nerve cells that provides sensory and motor functions in cnidarians, such as jellyfish.

Explicit Memory

A type of long-term memory involving conscious recollection of factual information, previous experiences, and concepts.