-The Above Figure Shows Three Possible Average Total Cost Curves

question 70

Multiple Choice

-The above figure shows three possible average total cost curves.If all firms in a perfectly competitive industry each have an average total cost curve identical to ATC1,each produce 30 units,and the market price of the good is $16 per unit,then the firms

• A)make zero economic profit and new firms enter the market.
• B)make zero economic profit and no firms enter or exit the market.
• C)make zero economic profit and some firms exit the market.
• D)incur an economic loss and some firms exit the market.
• E)make an economic profit and new firms enter the market.

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Definitions:

Electrical Impulses

Rapid fluctuations of voltage across a membrane, used by neurons and muscle cells for communication and activation.

Sensory Organs

Parts of the body that receive and process sensory stimuli, such as the eyes, ears, nose, tongue, and skin.

Neurons

Specialized cells of the nervous system that transmit information through electrical and chemical signals, forming the basis of neural communication.

Neuromuscular Junction

The site where a motor neuron communicates with a skeletal muscle cell to induce muscle contraction.