The Figure Given Below Shows the Revenue and Cost Curves

question 2

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
-Why do the perfectly competitive firms earn only normal profits in the long run?

• A)Entry or exit is barred
• B)Firms produce identical products
• C)A large number of buyers and sellers exist in the market
• D)Aggregate demand remains constant
• E)There is free entry and exit of firms

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Definitions:

Recall

A process by which a company retrieves and replaces defective or potentially unsafe consumer products from the market.

Water Footprint

The total volume of fresh water used to produce goods or services by a company, individual, or nation.

Heat Energy

The form of energy that is transferred between systems or objects with different temperatures, also known as thermal energy.

Polluter

An entity (individual, company, or other organization) that releases pollutants into the environment, causing pollution.