If a Firm in a Perfectly Competitive Market Faces the Cost

question 4

Multiple Choice

If a firm in a perfectly competitive market faces the cost curves in the graph shown and observes a market price of $13,the firm:

• A) can make positive profits by producing more than 35 units.
• B) can make positive profits by producing where MC = MR.
• C) cannot make positive profits and should shut down in the short run.
• D) should continue to operate in the short run, but plan to exit in the long run.

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Definitions:

Eating Disorder

A mental disorder characterized by abnormal eating habits that negatively affect a person's physical or mental health, such as anorexia or bulimia.

Weight Control

The practice of maintaining a healthy body weight through diet, exercise, and lifestyle management.

Delinquent Activity

Behavior that goes against the legal or societal norms, often performed by minors.

Life of Crime

A pattern of behavior characterized by the continual commitment of criminal acts, often leading to a lifestyle centered around illegal activities.