If the Short-Run Supply Curve and the Demand Curve Intersect

question 17

Multiple Choice

If the short-run supply curve and the demand curve intersect below the long-run supply curve,firms will experience ________ economic profits,meaning the price is ________ the minimum point on the average total cost curve.

• A) positive; above
• B) positive; below
• C) negative; above
• D) negative; below
• E) zero; above

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Definitions:

Sum of Squares

A statistical technique used to describe the amount of variation or dispersion of a set of data points.

Mean Absolute Deviation

The mean absolute deviation is a measure of dispersion in a dataset, calculated as the average of the absolute differences between each data point and the dataset's mean.

Sum of Squares

A measure used in statistics to describe the variability of data points around the mean or another value.

Forecasting Models

Quantitative and qualitative models used to predict future data points, trends, or patterns, based on historical and current data.