If the Demand Curve Facing the Acme Awl Company Is

question 67

Multiple Choice

If the demand curve facing the Acme Awl Company is tangent to its average total cost curve, all of the following statements are true except one.Which is the exception?

• A)Economic profit is zero.
• B)A normal profit exists.
• C)Marginal cost must exceed marginal revenue.
• D)Acme has excess capacity.
• E)Firms have no incentive to enter or leave this industry.

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Definitions:

Blood Pressure

The pressure exerted by circulating blood upon the walls of blood vessels, a critical indicator of cardiovascular health.

Mm Hg

Millimeters of mercury; a unit of pressure commonly used in measuring blood pressure.

White Blood Cells

Cells of the immune system involved in defending the body against both infectious disease and foreign materials.

Arteries

Blood vessels that carry oxygenated blood away from the heart to various parts of the body.