Figure 11-3 Figure 11-3 Shows Short-Run Cost and Demand

question 32

Multiple Choice

Figure 11-3 Figure 11-3 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches.
-Refer to Figure 11-3.Should the firm represented in the diagram continue to stay in business despite its losses?

• A)No,it should shut down.
• B)Yes,its total revenue covers its variable cost.
• C)No,it is not able to cover its fixed cost.
• D)Yes,it should increase its revenue by raising its price.

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Definitions:

Manipulative Behavior

Actions designed to influence or control others in subtle or deceitful ways.

Personality Disorder

A type of mental disorder characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from those accepted by the individual's culture.

Borderline Personality Disorder

A mental health disorder characterized by unstable moods, behavior, and relationships, often stemming from a fear of abandonment.

Administer Medication

The process of giving medication to a patient in accordance with a prescription.