In the Short Run, a Firm Should Exit the Industry

question 161

True/False

In the short run, a firm should exit the industry if its marginal cost exceeds its marginal revenue.

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Definitions:

Freudian Theory

A psychological theory developed by Sigmund Freud, which emphasizes unconscious processes and the importance of childhood experiences in shaping personality and behavior.

Id

In psychoanalytic theory, the part of the mind that is responsible for the instinctual impulses and demands for immediate satisfaction of basic needs.

Impulses

Sudden, involuntary inclinations to act without premeditation, often driven by internal or external stimuli.

Sullivan's Theory

A psychological theory developed by Harry Stack Sullivan that emphasizes the importance of interpersonal relationships and the social aspects of psychiatric disorders.