If , Then

question 3

Multiple Choice

If , then:

• A) must be parallel and in the same direction
• B) must be parallel and in opposite directions
• C) either must be zero
• D) the angle between must be 60
• E) none of the above is true

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Definitions:

Deadweight Losses

Economic inefficiencies that occur when market equilibrium is disrupted, leading to a loss of economic welfare.

Lowest ATC

The point where a firm achieves the lowest average total cost of production, optimizing operational efficiency.

Purely Competitive

Refers to a market structure where many small firms sell identical products, entry and exit are easy, and no single seller can influence the market price.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers.