-The Above Figure Shows Three Possible Average Total Cost Curves

question 255

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 ATC?,each produce 30 units,and the market price of the good is $16 per unit,then the firms

• A) make zero economic profit and firms neither enter nor exit the industry.
• B) make zero economic profit and so some firms exit the industry.
• C) incur an economic loss and so some firms exit the industry.
• D) incur an economic loss and so new firms enter the industry.
• E) make an economic profit and new firms enter the industry.

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Definitions:

Labia Majora

The outer folds of skin surrounding the vulva in females, serving protective and sexual functions.

Sexual Excitement

The physiological and emotional state of arousal and anticipation that precedes sexual activity, characterized by increased heart rate, blood flow, and libido.

Hardening

The process of becoming firm or rigid; in a medical context, it can refer to the calcification or other physical changes in tissues or vessels.

Facial Skin

The skin covering the face, which differs in texture and sensitivity from other areas of the body and requires specialized care.