Roger Owns a Small Health Store That Sells Vitamins in a Perfectly

question 269

Multiple Choice

Roger owns a small health store that sells vitamins in a perfectly competitive market. If vitamins sell for $12 per bottle and the average total cost per bottle is $11.50 at the profit-maximizing output level, then in the long run

• A)more firms will enter the market.
• B)some firms will exit from the market.
• C)the equilibrium price per bottle will rise
• D)average total costs will rise.

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Definitions:

Emissions

The output of gases or particles released into the environment from an engine or other machinery, often subject to regulations to limit pollution.

Federal Test Parameter

Specific criteria or conditions outlined by federal regulations that are used for conducting tests, usually related to environmental, safety, or performance standards.

FTP

File Transfer Protocol, a standard network protocol used to transfer computer files between a client and server on a computer network.

PCV Valve

A spring-loaded valve through which blowby combustion gases are drawn out of the crankcase and into the intake system.