Figure 14-5 Suppose a Firm Operating in a Competitive Market Has the Has

question 328

Multiple Choice

Figure 14-5
Suppose a firm operating in a competitive market has the following cost curves:
-Refer to Figure 14-5. In the short run,if the market price is higher than P4 but less than P6, individual firms in a competitive industry will earn

• A)positive profits.
• B)zero profits.
• C)losses but will remain in business.
• D)losses and will shut down.

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Definitions:

Pigs

Domesticated mammals known for their intelligence, social behavior, and as a source of food products.

Operant Psychologists

Psychologists who study behavior as it is influenced by its consequences, emphasizing the use of reinforcement and punishment.

Bar Pressing

A behavior in laboratory animals, like rats, trained to press a bar or lever to obtain food or water, used in research on learning and conditioning.