Consider the Total Cost and Revenue Curves Shown Below,for Two

question 142

Multiple Choice

Consider the total cost and revenue curves shown below,for two perfectly competitive firms,Firm A and Firm B. FIGURE 9-4
-Refer to Figure 9-4.Given its total cost and revenue curves,Firm B should

• A)exit the industry.
• B)shut down temporarily.
• C)maximize its profits by producing that level of output such that the slope of the TC curve is equal to the slope of the TR curve.
• D)maximize its profits by producing that level of output such that the slope of the TVC curve is equal to the slope of the TR curve.
• E)produce the level of output where the TC curve intersects the TR curve.

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Definitions:

Modeled Behavior

Behavior learned through observing and imitating the actions of others, a process fundamental to social learning theory.

Consequences

Refers to the outcomes or results that follow from an action or decision.

Vicariously

Experiencing something through another person's actions or experiences, rather than directly oneself.

Reinforcement

In behavioral psychology, a process by which the likelihood of a behavior's occurrence is increased by following it with a positive outcome or reward.