The Figure Given Below Shows the Revenue and Cost Curves

question 83

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
-Which of the following statements is true in the context of the long run?

• A)All the factors of production are fixed.
• B)No new firms enter the market.
• C)The producer can vary all the factors of production.
• D)The firms earn positive economic profit.
• E)Large firms tend to acquire market power.

---

Definitions:

Glare

Bright, blinding light that can cause discomfort and reduce visibility.

Internal Validity

Refers to the extent to which a study can establish a cause-and-effect relationship between variables, ensuring that the observed effects are due to the manipulations of the independent variables rather than external factors.

Dependent Variable

In experimental and statistical research, the variable that is being tested and measured to see if it is affected by changes in the independent variable.

Independent Variable

The variable that is manipulated or changed in an experiment to test its effects on the dependent variable.