Figure 13-3

question 30

Multiple Choice

Figure 13-3
Figure 13-3 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches.
-Refer to Figure 13-3.Should the firm represented in the diagram continue to stay in business despite its losses?

• A) No, it should shut down.
• B) Yes, its total revenue covers its variable cost.
• C) No, it is not able to cover its fixed cost.
• D) Yes, it should increase its revenue by raising its price.

---

Definitions:

Conjugation

(1) A sexual process in ciliate protists that involves exchange of haploid nuclei with another cell. (2) A mechanism for DNA exchange in bacteria that involves cell-to-cell contact.

Pathogenic

Capable of causing disease; refers to microorganisms or agents that can produce an illness when they invade a host organism.

Decomposers

Organisms that break down dead or decaying organisms, turning organic material into simpler substances and recycling nutrients in the ecosystem.

Photosynthesize

The process by which green plants, algae, and some bacteria convert light energy into chemical energy stored in glucose, using carbon dioxide and releasing oxygen.