If the Demand Curve of a Perfect Competitor Is Tangent

question 11

Multiple Choice

If the demand curve of a perfect competitor is tangent to (just touching) the firm's average total cost curve,

• A)the firm is definitely in the short run.
• B)the firm is probably in the short run.
• C)the firm is definitely in the long run.
• D)the firm is probably in the long run.
• E)there is no way to determine whether the firm is in the short run or the long run.

---

Definitions:

Legislation

Laws and regulations enacted by a governmental body to regulate, authorize, sanction, grant, declare, or restrict.

Truck Air Brake

A braking system utilized in heavy vehicles, like trucks, where compressed air is used to apply pressure to the brake pad to stop the vehicle.

Dual-Circuit Foot Valve

A brake valve used in heavy vehicles that controls two separate air brake systems from a single pedal.

FMVSS-121

The Federal Motor Vehicle Safety Standard pertaining to air brake systems, ensuring safe stopping distances and reliability for heavy trucks and buses.