In the Short Run, a Perfectly Competitive Firm Will Always

question 144

Multiple Choice

In the short run, a perfectly competitive firm will always shut down if, at all positive output levels, total revenue is

• A)less than total cost
• B)less than total cost but greater than variable cost
• C)less than total cost but greater than fixed cost
• D)greater than fixed cost
• E)less than variable cost

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Definitions:

Libido

A psychological term used to describe sexual desire or drive.

Psychosexual Development

A Freudian concept outlining how personality development takes place through stages during childhood, centered around the gratification of libidinal urges.

Fixation

An obsessive focus or attachment to a person, concept, or object, often stemming from unresolved developmental conflicts.

Striving for Superiority

A concept introduced by Alfred Adler, suggesting that a primary motivation for human behavior is the drive to overcome feelings of inferiority.