When Market Conditions in a Price-Taker Market Are Such That

question 17

Multiple Choice

When market conditions in a price-taker market are such that firms cannot cover their production costs,

• A) the firms will suffer long-run economic losses.
• B) the firms will suffer short-run economic losses that will be exactly offset by long-run economic profits.
• C) some firms will go out of business, causing prices to rise until the remaining firms can cover their production costs.
• D) all firms will go out of business, since consumers will not pay prices that enable firms to cover their production costs.

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Definitions:

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning techniques and environmental changes.

Psychotherapy

A general term for treating mental health problems by talking with a psychologist, psychiatrist, or other mental health provider.

Transference

In psychotherapy, the process by which patients project feelings and attitudes from past relationships onto the therapist.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, known for his theories about the unconscious mind and mechanisms of repression.