If ATC Is Equal to MC,then the Firm Is Operating

question 316

Multiple Choice

If ATC is equal to MC,then the firm is operating:

• A)at the minimum point of ATC.
• B)on the downward-sloping portion of ATC.
• C)on the upward-sloping portion of ATC.
• D)with increasing returns to scale.

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Definitions:

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors.

Social Comparison Theory

The belief that a person's societal and personal value is self-assessed by measuring themselves against others whom they view as being on better or worse footing.

Festinger

A reference to Leon Festinger, a psychologist best known for Cognitive Dissonance Theory, which suggests that we have an inner drive to hold all our attitudes and beliefs in harmony and avoid disharmony.

Normative Social Processes

Social mechanisms that dictate acceptable behaviors and beliefs within a society, guiding individuals on how to act according to societal norms.