Table 16-4 This Table Shows the Demand Schedule, Marginal Cost, and Average

question 137

Multiple Choice

Table 16-4
This table shows the demand schedule, marginal cost, and average total cost for a monopolistically competitive firm.

-Refer to Table 16-4.Which of the following is likely to happen in the long run in this market?

• A) The market is currently in a long-run equilibrium.
• B) The market price is likely to fall.
• C) Firms are likely to enter the market since firms are earning a positive economic profit.
• D) Firms are likely to leave the market since firms are earning a negative economic profit.

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Definitions:

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and to cope with reality or maintain self-image.

Projection

A defense mechanism where individuals attribute their own unacceptable thoughts, feelings, or motives to another person.

Repression

A defense mechanism where unpleasant thoughts, feelings, or desires are unconsciously pushed out of conscious awareness.

Psychosexual Stage

A concept in Freudian psychology that describes five stages of child development, each characterized by a different focus of libido (sexual drive).