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

question 3

Multiple Choice

Consider the total cost and revenue curves shown below, for two perfectly competitive firms, Firm A and Firm B. FIGURE 9- 5
-Refer to Figure 9- 5. If both Firms A and B are producing a level of output such that the slope of the TC curve is equal to the slope of the TR curve,

• A) then both firms are earning positive economic profits because the distance between TR and TC is the greatest.
• B) then both firms are suffering losses because the distance between TR and TC is the smallest.
• C) then MC = MR and the firm is maximizing profit (or minimizing losses).
• D) then MC = MR but the firm may not be maximizing its profits.
• E) then the ATC is at a minimum and the firm is maximizing profits.

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Definitions:

Psychodynamic Theory

A psychological perspective that examines unconscious processes and emotional factors influencing behavior, founded on the concepts of Sigmund Freud.

Neo-Analytic Theory

A contemporary approach to psychology that emphasizes the role of the ego and individual psychology over Freud's foundational psychoanalytic theories.

Wish Fulfillment

The unconscious desire to have one’s fantasies realized.

Day Residue

Experiences from the day incorporated into a dream’s manifest content.