Figure 14-1 The Graph Below Depicts the Cost Structure for a Firm

question 179

Multiple Choice

Figure 14-1
The graph below depicts the cost structure for a firm in a competitive market.

-Refer to Figure 14-1.When price rises from P₂ to P₃,the firm finds that

• A)marginal cost exceeds marginal revenue at a production level of Q₂.
• B)if it produces at output level Q₃ it will earn a positive profit.
• C)expanding output to Q₄ would leave the firm with losses.
• D)it could increase profits by lowering output from Q₃ to Q₂.

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Definitions:

Diploid Zygote

A fertilized egg cell that possesses two complete sets of chromosomes, one from each parent, resulting in a diploid organism.

Fungal Filaments

The thread-like structures, or hyphae, that make up the mycelium of a fungus.

Mycelia

The vegetative part of a fungus, consisting of a mass of branching, thread-like hyphae, often found underground.

Hyphae

The long, branching filamentous structures of a fungus, which form the mycelium that is considered the vegetative part of the fungus.