The Diagram Shows a Plot of the Potential Energy as a Function

question 44

Multiple Choice

The diagram shows a plot of the potential energy as a function of x for a particle moving along the x axis. The points of stable equilibrium are:

• A) only a
• B) only b
• C) only c
• D) only d
• E) b and d

---

Definitions:

Variable Cost

A cost that increases when the firm increases its output and decreases when the firm reduces its output.

Average Total Cost

The total cost divided by the number of units produced, representing the average cost of production per unit.

Purely Competitive Industry

An industry characterized by many firms offering identical products where no single firm can influence the market price.

Normal Profit

The minimum level of profit needed for a company to remain competitive in the market, typically considered as the cost of doing business, including opportunity costs.