Figure 13-4 Suppose a Firm Operating in a Competitive Market Has the Has

question 227

Multiple Choice

Figure 13-4
Suppose a firm operating in a competitive market has the following cost curves:
-Refer to Figure 13-4.When price falls from P3 to P1,the firm finds that it

• A) decreases its fixed costs.
• B) should produce Q1 units of output.
• C) should produce Q3 units of output.
• D) should shut down immediately.

---

Definitions:

Puppet Show

A form of entertainment involving the manipulation of puppets to tell a story or perform.

Assimilation

The process by which individuals or groups of differing ethnic heritage are absorbed into the dominant culture of a society.

Accommodation

In psychology, a cognitive process that involves adjusting cognitive schemas and perceptions to incorporate new information.

Preoperational Thinker

A stage in Piaget's theory of cognitive development where children aged 2-7 years engage in symbolic play and struggle with logic and taking the perspective of others.