In Response to an Increase in the Market Demand, to Maximize

question 76

Multiple Choice

In response to an increase in the market demand, to maximize short- run profits, managers of perfectly competitive firms will _______ production and move______ along the marginal cost curve.

• A)increase; upward
• B)decrease; downward
• C)decrease; upward
• D)increase; downward

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Definitions:

Mere Exposure Effect

The tendency of people to like things more just because they recognize them.

Self-Fulfilling Prophecy

A belief or expectation that an individual holds about a future event that manifests because the individual holds it.

Self-Disclosure

The act of revealing personal, private information about oneself to others, facilitating intimacy and trust in relationships.

Social Scripts

Culturally provided mental instructions for how to act in various social situations, guiding behavior in recognizable routines.