Figure 9-B -Refer to Figure 9-B.The Graph Illustrates a Firm in Long-Run

question 80

Multiple Choice

Figure 9-B
-Refer to Figure 9-B.The graph illustrates a firm in long-run equilibrium.Which of the following statements is true?

• A)The firm is making a normal profit, output is q*; D = MC, and MR = LRATC at q*.
• B)The firm is making a loss, output is q*; D = MC, and MR = LRATC.
• C)The firm is making a normal profit, output is q*; D = LRATC, and MR = MC at q*.
• D)The firm is making a loss, output is q*; D = LRATC, and MR = MC at q*.
• E)The firm is making an above-normal profit, output is q*; D = LRATC, and MR = MC at q*.

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Definitions:

Attitude

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor.

Price

The amount of money required to purchase a good or service.

Alternative Energy Sources

refer to sources of energy that are considered alternatives to the most commonly used non-sustainable sources, such as fossil fuels, including wind, solar, and hydroelectric power.

Control Group

A group in an experiment that does not receive the experimental treatment, used as a benchmark to measure how the other tested subjects do.