Refer to the Figure Below

question 3

Multiple Choice

Refer to the figure below. If the market for doughnuts is perfectly competitive, and the price of a doughnut is 10 cents, then this firm:

• A)should shut down.
• B)should produce 50 doughnuts.
• C)should shut down in the long run.
• D)will earn an economic loss.

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Definitions:

Working Memory

A newer understanding of short-term memory that focuses on conscious, active processing of incoming auditory and visual-spatial information, and of information retrieved from long-term memory.

Long-Term Memory

The phase of memory capable of storing information for an extended period, from hours to a lifetime.

Automatic Processing

Mental activities that occur without conscious awareness or effort, such as habituated tasks or recognized patterns.

Effortful Processing

The active and conscious effort to encode or process information into memory, requiring attention and mental effort.