Figure 12-4 Figure 12-4 Shows the Cost and Demand Curves for a and Demand

question 173

Multiple Choice

Figure 12-4

Figure 12-4 shows the cost and demand curves for a profit-maximizing firm in a perfectly competitive market.
-Refer to Figure 12-4.If the market price is $30, should the firm represented in the diagram continue to stay in business?

• A)No, it should shut down because it is making a loss.
• B)No, it should shut down because it cannot cover its variable cost.
• C)Yes, because it is covering part of its fixed cost.
• D)Yes, because it is making a profit.

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Definitions:

Abdominal Wall

The layer of muscles and tissue that forms the boundary of the abdomen, providing structural support and protection for abdominal organs.

Sigmoidoscopy

A medical examination method employing a flexible tube with a light and camera to view the interior of the sigmoid colon and rectum.

Examination

The act of inspecting or investigating something thoroughly in order to determine its condition or to discover any abnormalities.

Sigmoid

An S-shaped section of the large intestine between the descending colon and the rectum.