The Figure Given Below Shows the Revenue and Cost Curves

question 32

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-Since the beginning of the millennium, the United States has witnessed closure of many Internet start-up companies. According to the model of perfect competition, these companies must have shut down in the short run because:

• A)the price they were charging was too high to attract customers.
• B)the price they were charging was too low to provide sufficient revenues.
• C)they were not earning enough revenue to cover their total costs.
• D)they were not earning enough revenue to cover their total variable costs.
• E)they were not earning enough revenue to cover their total fixed costs.

---

Definitions:

Hypothalamus

An area of the brain situated beneath the thalamus, which regulates the autonomic nervous system and pituitary gland functions, overseeing the regulation of body temperature, thirst, hunger, and various other systems that maintain body equilibrium.

Amygdala

A part of the brain's limbic system involved in emotion regulation, particularly fear and pleasure responses.

Thought Suppression

The process of consciously attempting to avoid thinking about certain thoughts, which can paradoxically lead to an increase in those thoughts.

Practicing the Guitar

The act of engaging in exercises and playing the guitar to improve skill and technique.