The Following Graph Depicts the Various Cost Curves for a Representative

question 15

Multiple Choice

The following graph depicts the various cost curves for a representative competitive firm producing quantity Q1:

-Refer to the above graph to answer this question.If the price of the product is P1,what does the graph suggest?

• A)The firm is making economic profits in the short run but not in the long run.
• B)The firm is making economic profits in the long run but not in the short run.
• C)The firm is making economic profits in both the short run and the long run.
• D)The firm is not making economic profits in either the short run or the long run.

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Definitions:

Oxygen

A chemical element (O) that is a highly reactive nonmetal, essential for respiration in most living organisms.

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An overgrowth of fungi in or on the body, typically causing irritation or disease; common types include thrush and athlete's foot.

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A type of protein found in hair, nails, and skin, providing strength and protection.

Chemical Composition

The identification and quantification of the chemical elements and compounds that make up a specific material or substance.