The Figure Given Below Shows the Revenue and Cost Curves

question 105

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.1

-A firm whose price is below its average cost:

• A)is earning negative economic profit.
• B)is earning positive economic profit.
• C)is just breaking even.
• D)is earning zero economic profit.
• E)is earning zero accounting profit.

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Definitions:

Discrete Variable

A variable that can take on a countable number of distinct values and cannot take on every value within its range.

Discrete Random Variable

A variable that can take on a countable number of distinct values, often associated with experiments that have a finite set of possible outcomes.

Discrete Random Variable

A variable that assumes a countable number of distinct values, with each value associated with a certain probability.

Discrete Probability Distribution

A discrete probability distribution outlines the probabilities of outcomes for discrete random variables, where outcomes are countable.