As Long as It Does Not Shut Down, a Profit-Maximizing

question 380

Multiple Choice

As long as it does not shut down, a profit-maximizing perfectly competitive firm will

• A) always earn an economic profit.
• B) produce so that marginal revenue equals marginal cost.
• C) produce so that price equals average cost.
• D) never set its price equal to its marginal revenue.

---

Definitions:

Precise Reaction Times

The time period taken to respond to a specific stimulus with great accuracy, often measured in cognitive and motor tasks.

William James

An American philosopher and psychologist, often referred to as the "Father of American psychology," known for his work in pragmatism and functional psychology.

True Purpose

The actual reason behind an action or an existence, not always visible or declared.

Psychology

The exploration and analysis of mental processes and actions, including both aware and unaware experiences and cognitive activities.