The Figure Shows a Representative Firm in a Price-Taker Market

question 176

Multiple Choice

The figure shows a representative firm in a price-taker market.Which of the following is true regarding the situation depicted in the figure?

• A)This firm shown is earning zero economic profit.
• B)The industry is in long-run equilibrium.
• C)Firms will neither enter nor exit the market.
• D)All of the above are true.

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Definitions:

Continuous Reinforcement

A reinforcement schedule in which a reward follows every correct response, often used to teach new behaviors.

Incentive Motivation

The drive to engage in an action or behavior due to the allure of external rewards or incentives.

Goal Object

The specific target or outcome that a person's efforts or actions are intended to achieve.

Mediator

An entity or substance that plays a role in the process leading to a specific result or outcome, often used in the context of scientific research or conflict resolution.