Use the Following to Answer Questions

question 213

Multiple Choice

Use the following to answer questions:
Figure: Price and Quantity 1
-(Figure: Price and Quantity 1) In the diagram, at which price is there a surplus?

• A) $80
• B) $50
• C) $40
• D) $0

Evaluate the reasons firms enter, stay in, or exit from a market.

Differentiate between average revenue, marginal revenue, and their importance to profit-maximizing firms.

Understand conditions under which the long-run supply curve can be perfectly elastic or slope upward.

Identify circumstances that display the rationale behind seemingly irrational market behaviors.

---

Definitions:

Self-Fulfilling Prophecy

An expectation that comes true because of the tendency of the person holding it to act in ways that bring it about.

Self-Efficacy

The belief in one's capabilities to organize and execute the courses of action required to manage prospective situations.

Mastery Goal

An objective focused on developing competence or mastering a skill rather than comparing oneself to others.

Approach Goal

A goal that an individual is actively working towards, often characterized by the pursuit of positive outcomes or experiences.