In the Short Run, a Firm Operating in a Competitive

question 386

Multiple Choice

In the short run, a firm operating in a competitive industry will shut down if price is

• A)less than average total cost.
• B)less than average variable cost.
• C)greater than average variable cost but less than average total cost.
• D)greater than marginal cost.

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Definitions:

McClelland

A theorist known for his work on human motivation and the Theory of Needs, which includes the need for achievement, power, and affiliation.

Achievement

The act of accomplishing a task or reaching a goal, often through effort, skill, or courage.

Affiliation

A connection or association with a group or organization.

Social Comparison

A psychological process where individuals evaluate their own abilities and opinions by comparing themselves to others.