When a Profit-Maximizing Firm in a Competitive Price-Searcher Market Is

question 139

Multiple Choice

When a profit-maximizing firm in a competitive price-searcher market is in long-run equilibrium, price equals

• A) marginal cost, and profits are positive.
• B) average total cost, and profits are zero.
• C) marginal cost, and profits are zero.
• D) average total cost, and profits are positive.

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Definitions:

Neutral Behaviors

Actions that do not convey or express any significant positive or negative emotions, attitudes, or affect.

Hedonic Relevance

The degree to which a situation or an object can produce pleasurable or unpleasurable sensations.

Kelly's Attribution Theory

A psychological theory proposed by George Kelly that focuses on how individuals interpret events and how this relates to their thinking and behavior.

Covariation Principle

A principle in social psychology that asserts that for someone to attribute an effect to a condition, they must observe that the effect covaries with the condition across time.