Mrs Smith Operates a Business in a Competitive Market

question 545

Multiple Choice

Mrs. Smith operates a business in a competitive market. The current market price is $7.50. At her profit-maximizing level of production, the average variable cost is $8.00, and the average total cost is $8.25. Mrs. Smith should

• A)shut down her business in the short run but continue to operate in the long run.
• B)continue to operate in the short run but shut down in the long run.
• C)continue to operate in both the short run and long run.
• D)shut down in both the short run and long run.

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Definitions:

Visual Stimulus

Any sight or image that may influence or prompt a response from an observer.

Behaviorism

A theoretical outlook within psychology that emphasizes the study of observable behaviors, rather than internal mental states, as the primary source of psychological data.

Hybrid Brain

A hybrid brain combines biological and artificial components, aiming to enhance cognitive functions or compensate for neurological deficits.

Social Cognition

The way an individual understands his or her own social world.