Figure 14-10 -Refer to Figure 14-10.If the Price Is P2 in the P2

question 34

Multiple Choice

Figure 14-10
-Refer to Figure 14-10.If the price is P2 in the short run,what will happen in the long run?

• A) Nothing.The price is consistent with zero economic profits,so there is no incentive for firms to enter or exit the industry.
• B) Individual firms will earn positive economic profits in the short run,which will entice other firms to enter the industry.
• C) Individual firms will earn negative economic profits in the short run,which will cause some firms to exit the industry.
• D) Because the price is below the firm's average variable costs,the firms will shut down.

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Definitions:

Moro Reflex

An involuntary response seen in newborns, where they suddenly extend their arms and legs and then curl them in if they feel like they are falling.

Denver Developmental Screening Test

A standardized test used to assess developmental problems in children from infancy through preschool.

Apgar Scoring System

A quick test performed on a newborn at 1 and 5 minutes after birth to assess the baby's heart rate, respiratory effort, muscle tone, reflex response, and color.

Standardized Growth Charts

Charts used by healthcare professionals to track a child's growth over time compared to national averages for height, weight, and head circumference.