The Figure Given Below Shows the Demand and Cost Curves

question 104

Multiple Choice

The figure given below shows the demand and cost curves of a perfectly competitive firm.Figure: 10.4
D: Demand curve
MC: Marginal cost curve
ATC: Average-total cost curve
AVC: Average-variable-cost curve
-Some competitive firms are willing to operate at a loss, in the short run, because:

• A)their average variable cost is less than the price.
• B)their fixed costs are less than their current losses.
• C)their average total cost is less than the price.
• D)they do not attempt to maximize profits or minimize losses.
• E)their revenues are at least able to cover their fixed costs.

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Definitions:

Hispanic Americans

Americans of Spanish-speaking heritage, originating from Latin American countries or Spain, contributing to the cultural and linguistic diversity of the United States.

Ecological Theory

A framework in the social and biological sciences that explores how organisms interact with their environment and the impacts of these interactions on both the organisms and their habitats.

Accommodation

The process of adapting or adjusting to new conditions or environments, or in sociology, the process by which conflicting groups coexist by making concessions.

Ethnic Groups

Collections of people who share common cultural characteristics, such as language, religion, and customs.