When a Firm Is Buying an Input in a Perfectly

question 57

Multiple Choice

When a firm is buying an input in a perfectly competitive market, it accepts:

• A) that the input price is given.
• B) that the input price equals the input's marginal cost.
• C) that the supply curve of the input to the firm is horizontal.
• D) all of the above
• E) a and b

---

Definitions:

James-Lange Theory

A theory of emotion suggesting that physiological arousal precedes the emotional experience, implying that different emotions are associated with specific bodily responses.

Physiological Arousal

The activation of the body's autonomic nervous system, resulting in physical responses such as increased heart rate, sweating, or rapid breathing.

Affective Reactions

Refers to emotional responses individuals have to external stimuli, including feelings of happiness, anger, sadness, or fear.

Emotional Reactions

The spontaneous and instinctive responses we have towards certain stimuli, influenced by our emotions.