Figure 12-7 the Graphs in Figure 12-7 Represent the Perfectly

question 151

Multiple Choice

Figure 12-7 The graphs in Figure 12-7 represent the perfectly competitive market demand and supply curves for the apple industry and demand and cost curves for a typical firm in the industry.
-Refer to Figure 12-7.Which of the following statements is true?

• A)The firm will produce 30 thousand pounds of apples in the short run and earn an economic profit.New firms will enter the market and shift the market supply curve to the left.
• B)The firm will produce 30 thousand pounds of apples in the short run and earn an economic profit,but it would earn a greater profit if it produced at the lowest point on the ATC curve.
• C)The firm will produce 30 thousand pounds of apples in the short run and earn an economic profit.New firms will enter the industry; as a result,the firm will be forced to exit the industry in the long run.
• D)The firm will produce 30 thousands pounds of apples in the short run and earn an economic profit.In the long run the firm will break even.

Analyze how trade affects national standards of living and employment.

Understand the basic concepts of international trade, including importing and exporting.

Analyze the impact of world prices on a country's trade behavior (exporting and importing).

Apply the concept of comparative advantage to determine trade patterns between nations.

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Definitions:

Caffeine

A stimulant of the central nervous system found in coffee, tea, chocolate, and various medications, known for its ability to reduce fatigue and improve concentration.

Nicotine

A stimulant and potent parasympathomimetic alkaloid that is naturally produced in the nightshade family of plants and is widely used for its stimulating and relaxing effects.

Developing Brain

Refers to the growth and maturation process of the brain from prenatal stages through childhood and adolescence.

Adrenal Glands

Small, triangular glands located on top of both kidneys that produce hormones like cortisol and adrenaline, which help control heart rate, blood pressure, and other important bodily functions.