The Following Figure Shows Equilibrium at the Industry and Firm

question 103

Multiple Choice

The following figure shows equilibrium at the industry and firm level.Figure 10.6
In the figure,
S₁, S₂, S₃ are the market supply curves.D₁ and D₂ are the market demand curves.MC is the marginal cost curve of the firm.MR₁ and MR₂ are the marginal revenue curves of the firm.ATC is the average-total-cost curve of the firm.
-Graphically, consumer surplus is the area:

• A)above the equilibrium price and below the demand curve.
• B)below the equilibrium price and above the supply curve.
• C)above the equilibrium price and below the supply curve.
• D)below the equilibrium price and above the demand curve.
• E)above the equilibrium price and above the supply curve.

Identify factors excluding cash payments in budgeting such as depreciation expense.

Understand the purpose and components of capital expenditure budgets.

Understand the components and importance of a cash budget.

Recognize different types of budgets within a corporate setting and their purposes.

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Definitions:

Modeling

A learning technique based on observing and imitating the behavior of others, often used in therapy and behavior modification programs.

Prompting

In behavioral psychology, it involves giving cues or hints to facilitate the desired response from an individual.

Shaping

A method of operant conditioning by which successive approximations of a desired behavior are reinforced until the exact behavior is achieved.

Reinforcement

In psychology, a process by which a behavior is strengthened or increased, often through rewards or positive outcomes, following its occurrence.