A Price- Taking Firm in the Short Run Should Not

question 43

Multiple Choice

A price- taking firm in the short run should not produce any level of output unless

• A) marginal revenue equals average total cost.
• B) average revenue equals or exceeds average variable cost.
• C) it is earning positive profits.
• D) marginal revenue exceeds marginal cost.
• E) average revenue equals or exceeds average total cost.

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Definitions:

Small World Problem

A concept in sociology indicating that despite large social networks, there are surprisingly short chains of acquaintances between any two individuals.

Social Networking

The use of internet-based platforms and tools to build, enhance, or maintain connections with friends, family, and professional contacts.

Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors in judging others' behavior.

Higher Grade

A superior level of quality, achievement, or classification, often used in educational contexts to denote excellence or higher performance standards.