Figure 12-9 Figure 12-9 Shows Cost and Demand Curves

question 236

Multiple Choice

Figure 12-9 Figure 12-9 shows cost and demand curves facing a profit-maximizing, perfectly competitive firm.
-If a firm shuts down in the short run,

• A) its loss equals zero.
• B) its loss equals its fixed cost.
• C) it makes zero economic profit.
• D) its total revenue is not large enough to cover its fixed cost.

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Definitions:

Atoms

The basic unit of a chemical element, consisting of a nucleus of protons and neutrons, and surrounded by electrons.

Ion

An atom or molecule with a net electric charge due to the loss or gain of one or more electrons.

Electricity

A form of energy resulting from the existence of charged particles, either statically as an accumulation of charge or dynamically as a current.

Intermolecular Forces

The forces of attraction or repulsion which act between neighboring particles (atoms, molecules, or ions).