Figure 14-1 Suppose That a Firm in a Competitive Market Has the Has

question 457

Multiple Choice

Figure 14-1
Suppose that a firm in a competitive market has the following cost curves:
-Refer to Figure 14-1. If the market price is $6.30, the firm will earn

• A)positive economic profits in the short run.
• B)negative economic profits in the short run but remain in business.
• C)negative economic profits and shut down.
• D)zero economic profits in the short run.

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Definitions:

Mutually Exclusive

Refers to events that cannot happen at the same time, meaning the occurrence of one event excludes the possibility of the other.

Microsoft Office 2003

A suite of productivity software released by Microsoft, including applications such as Word, Excel, and PowerPoint, used for document creation, calculation, and presentation.

African American

A term referring to Americans with ancestry from the black racial groups of Africa.

Probability

The numerical evaluation, situated between 0 and 1, estimating the probability of an event's occurrence.