Figure 13-4 Figure 13-4 Shows Short-Run Cost and Demand Curves for a and Demand

question 34

Multiple Choice

Figure 13-4

Figure 13-4 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches.
-Refer to Figure 13-4.Should the firm represented in the diagram continue to stay in business despite its losses?

• A)No, it should shut down.
• B)Yes, its total revenue covers its variable cost.
• C)No, it is not able to cover its fixed cost.
• D)Yes, it should increase its revenue by raising its price.

---

Definitions:

Action Potentials

Electrical impulses that mediate the conduction of signals along the neuron's membrane, playing a critical role in nerve signal transmission.

Effector

An organ, gland, or muscle capable of responding to a stimulus, especially a nerve impulse.

Nervous System

The complex network of nerve cells and fibers that transmits nerve impulses between parts of the body, enabling sensation, movement, and thought.

Motor Neuron

A type of nerve cell that transmits signals from the brain and spinal cord to muscles, causing them to contract.