A Perfectly Competitive Firm Is Breaking Even

question 224

Multiple Choice

A perfectly competitive firm is breaking even. In the short run it should ________. In the long run it should ________.

• A) shut down; expand
• B) produce where MC = MR; leave the industry
• C) produce where MC = MR; keep the same production level
• D) shut down; exit the industry

---

Definitions:

Personal Construct Theory

A psychological theory developed by George Kelly, proposing that individuals use personal constructs (bipolar mental templates) to understand and interpret events and relationships in their life.

Kelly's Theory

A psychological theory developed by George Kelly, emphasizing personal constructs as the primary way individuals understand the world.

Psychosocial Stages

Refers to Erik Erikson's theory which outlines eight stages of psychological development that individuals pass through from infancy to adulthood, each characterized by a different psychological challenge or conflict.

Erikson's Psychosocial

A theory formulated by Erik Erikson, describing eight stages of human development, each characterized by a different psychological crisis that needs resolution.