Use the Figure Below to Answer the Following Questions

question 103

Multiple Choice

Use the figure below to answer the following questions.

Figure 12.4.3
-Refer to Figure 12.4.3, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market. Firms are

• A)making an economic profit, and some firms leave the market. Market supply decreases.
• B)making an economic profit, and some firms enter the market. Market supply increases.
• C)incurring an economic loss, and some firms leave the market. Market supply decreases.
• D)incurring an economic loss, and some firms enter the market. Market supply increases.
• E)incurring an economic loss, but since they are covering average variable cost, no one will exit the market in the long run.

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Definitions:

Submissively

In a manner that shows a readiness to conform to the authority or will of others, often without resistance.

Uncertainty Avoidance Culture

Cultures that exhibit a low tolerance for uncertainty and ambiguity, often relying on strict rules, regulations, and procedures to minimize the unpredictability of future events.

Individual Rights

The freedoms and legal entitlements allowed to each person in a society.

Short-Term Orientation

A perspective or approach focusing on immediate outcomes or benefits rather than long-term goals or implications.