Consider a Firm Operating with the Following: Price = 10;

question 75

Multiple Choice

Consider a firm operating with the following: price = 10; MR = 10; MC = 10; ATC = 10. This firm is:

• A) making an economic profit of 10.
• B) an example of monopolistic competition.
• C) going to go out of business in the long run.
• D) a monopolist for a product with a relatively inelastic demand.
• E) perfectly competitive in long-run equilibrium.

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Definitions:

Just World Hypothesis

The just world hypothesis is the belief that people get what they deserve in life, leading individuals to rationalize injustice or misfortune that befalls others.

Thin Slices

Brief observations of another person's behavior that allow for quick and sometimes accurate judgments about their personality or state.

Personal Attributions

People’s explanations for why events or actions occur that refer to people’s internal characteristics, such as abilities, traits, moods, or efforts.

Trustworthiness

The quality of being reliable, honest, and deserving of trust.