Figure 9-4 Figure 9-4 Shows the Cost and Demand Curves

question 87

Multiple Choice

Figure 9-4
Figure 9-4 shows the cost and demand curves for a profit-maximizing firm in a perfectly competitive market.
-Refer to Figure 9-4.If the market price is $30,should the firm represented in the diagram continue to stay open?

• 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:

Acheulean Tool Tradition

A prehistoric technology associated with early humans, characterized by bifacially flaked hand axes and other tools.

Oldowan

Refers to the archaeological evidence pertaining to the use of very simple chipped stone tools by early human ancestors in the Lower Paleolithic period.

Modern Human Origins

The study of the evolutionary processes and ancestral lines that led to the emergence of Homo sapiens as a distinct species.

Miocene

An epoch of the Neogene Period in the geological timescale, occurring about 23 to 5.3 million years ago, characterized by the development of grasslands and the evolution of many modern species.