If a Typical Firm Has TC Given by Q²

question 31

Multiple Choice

If a typical firm has TC given by q² + 5q + 25 and the price in the competitive market is 25, then:

• A)there will be entry as firms are making a loss.
• B)there will be exit as firm are making a loss.
• C)there will be entry as firms are making a profit.
• D)there will be exit as firms are making a profit.

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Definitions:

Mental Set

A psychological tendency to approach problems in a certain way due to past experiences and successes, potentially limiting creativity.

Practical Intelligence

refers to the ability to solve everyday problems by utilizing knowledge gained from experience rather than from formal academic education.

Robert Sternberg

An American psychologist known for his theory on love and intelligence, including the Triarchic Theory of Intelligence.

Confirmation Bias

The inclination to seek out, understand, prefer, and remember information in a manner that validates one's previously held beliefs or theories.