The Following Figure Depicts the Short-Run Cost Curves of a Perfectly

question 143

Multiple Choice

The following figure depicts the short-run cost curves of a perfectly competitive firm.

-Refer to the figure above.Should the market price fall to $4,this film will ________.

• A) shut down immediately and make zero profit
• B) shut down immediately and suffer a loss equal to its fixed costs
• C) continue operating in the short run and suffer a loss that is less than its fixed costs
• D) produce 60 units and cover exactly its variable cost

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Definitions:

Exposure Therapy

A psychological treatment that involves confronting fears and anxieties by gradual, controlled exposure to the objects, activities, or situations that cause them.

Systematic Desensitization

A behavioral therapy technique used to help individuals overcome phobias and anxiety disorders by gradually exposing them to the anxiety source while teaching them relaxation techniques.

Aversive Conditioning

is a form of behavioral training where a negative stimulus is paired with an undesirable behavior in order to reduce or eliminate that behavior.

Therapeutic Setting

An environment designed to facilitate healing and therapy, often characterized by safety, privacy, and comfort.