Use the Figure to Answer the Following Question(s)

question 149

Multiple Choice

Use the figure to answer the following question(s) .
Figure 10-5
-Given that the short-run cost and demand conditions shown in Figure 10-5 for the competitive price-searcher firm are representative for all firms in the industry, what will happen in this industry in the long run?

• A) The firm will make long-run economic profits.
• B) The firm will face competition from new entrants into the industry, causing this firm's demand to decline until zero economic profits are restored.
• C) The firm will face competition from new entrants into the industry, but since lower prices will increase total sales, profit will stay the same as that shown in the figure.
• D) The firm will see some of its competitors exit from the industry, causing this firm's demand to increase until zero economic profits are restored.

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Definitions:

Psychological Tests

Standardized measures or procedures used to evaluate individual behavioral and cognitive functioning, personality traits, and mental health status.

American Psychological

Likely refers to the American Psychological Association (APA), the leading scientific and professional organization representing psychology in the United States.

Wilhelm Wundt

Often regarded as the father of experimental psychology, he established the first psychology laboratory in Leipzig, Germany.

Structuralism

A theory in psychology focusing on the elements of consciousness and their logical relationships, aimed at understanding the structure of the mind.