Refer to the Information Provided in Figure 9

question 270

Multiple Choice

Refer to the information provided in Figure 9.2 below to answer the question(s) that follow. Figure 9.2
-Refer to Figure 9.2. If demand for wheat is D₁, then in the long run

• A) the firm will increase its price and output.
• B) the firm will exit the industry.
• C) new firms will enter the industry, and the current firms will expand production.
• D) firms will increase their output so that their average fixed cost per unit falls.

---

Definitions:

Neurotic Trend

A pattern of thinking, feeling, and behaving that is dominated by neurotic needs or desires, often leading to maladaptive coping strategies.

Basic Anxiety

A term introduced by psychoanalyst Karen Horney, referring to feelings of helplessness and insecurity that arise from living in a potentially hostile world.

Neurotic Needs

These are emotional needs that can become compulsive and counterproductive, often resulting from attempts to deal with anxiety and insecurity.

Basic Anxiety

A theory by Karen Horney that refers to feeling helpless and insecure as a child, which can affect adult personality.