The Following Figure Shows the Marginal Cost Curve and the Average

question 38

Multiple Choice

The following figure shows the marginal cost curve and the average total cost curve of a firm operating in a perfectly competitive market. All of the other firms in this market have a cost structure similar to this firm's.

-Refer to the figure above.Suppose the price in this market is $5.We expect ________.

• A) the firms to start exiting this market
• B) the firms to start entering this market
• C) no entry or exit in this market
• D) exit from this market, followed by entry of firms into this market

---

Definitions:

Social Psychology

The scientific study of how individuals think, influence, and relate to one another within a social context.

High Performance

Achieving significantly better outcomes or efficiency levels than standard benchmarks or expectations.

Social Relationships

Pertains to connections or interactions between individuals or groups in a social context, influencing behaviors and attitudes.

Edgar Schein

A notable American organizational psychologist known for developing seminal theories on organizational culture and leadership.