Figure 9-17 the Graphs in Figure 9-17 Represent the Perfectly

question 56

Multiple Choice

Figure 9-17
The graphs in Figure 9-17 represent the perfectly competitive market demand and supply curves for the apple industry and demand and cost curves for a typical firm in the industry.
-Refer to Figure 9-17.Which of the following statements is true?

• A) The firm will produce 30 thousand pounds of apples in the short run and earn an economic profit. New firms will enter the market and shift the market supply curve to the left.
• B) The firm will produce 30 thousand pounds of apples in the short run and earn an economic profit, but it would earn a greater profit if it produced at the lowest point on the ATC curve.
• C) The firm will produce 30 thousand pounds of apples in the short run and earn an economic profit. New firms will enter the industry; as a result, the firm will be forced to exit the industry in the long run.
• D) The firm will produce 30 thousands pounds of apples in the short run and earn an economic profit. In the long run the firm will break even.

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Definitions:

Negative Reinforcement

A behavioral principle where the removal of a negative stimulus strengthens a desired behavior.

Unpleasant Stimulus

A type of stimulus that is typically undesirable or uncomfortable, leading to negative reactions in individuals.

Positive Reinforcement

A process in behavior modification where a behavior is encouraged by rewarding it.

Flooding

a behavioral therapy technique used to treat phobias and anxiety disorders by exposing the patient to their fear at its most extreme intensity, without any gradual build-up.