The Figure Given Below Shows the Demand and Cost Curves

question 68

Multiple Choice

The figure given below shows the demand and cost curves of a perfectly competitive firm. Figure: 9.4 D: Demand curve
MC: Marginal cost curve
ATC: Average-total cost curve
AVC: Average-variable-cost curve
Refer to Figure 9.4.The presence of the average-variable-cost curve suggests that the firm is operating:

• A)in the short run.
• B)in the long run.
• C)at a gain.
• D)in a monopoly.
• E)at a zero profit.

---

Definitions:

Annihilation

The complete destruction or obliteration of something, often used in contexts ranging from physics to theology.

Cremation

The reduction of a human body by means of heat or direct flame. The cremated remains are called cremains or ashes and weigh between three and nine pounds. Ashes is a very poor word to describe the cremated remains because they are actually processed bone fragments and calcium residue that have the appearance of crushed rock or pumice.

Technological Devices

Tools, machines, or equipment developed through technological means to perform specific functions or tasks.

Decentralism

A system or ideology that advocates for the distribution of administrative powers away from a central authority.