Figure 10-6 ​

question 165

Multiple Choice

Figure 10-6
​
-At its long-run equilibrium level of output, the demand curve facing an individual perfectly competitive firm is tangent to its

• A)total economic profit curve.
• B)long-run average cost curve.
• C)marginal cost curve.
• D)marginal profit curve.

---

Definitions:

Indifference Curve

An indifference curve represents a combination of two goods between which a consumer is indifferent, showing equal utility or satisfaction levels.

Absolute Values

A number's distance from zero on the number line, disregarding its direction; always a non-negative value.

Favorite Bundle

The combination of goods or services that maximizes an individual's utility given their budget constraints.

Convex Preferences

A consumer preference pattern indicating a desire for mixed bundles of goods over extreme bundles, illustrating a preference for diversification.