Which of the Following Could Generate Economic Profits for Perfectly

question 35

Multiple Choice

Which of the following could generate economic profits for perfectly competitive firms in the short run, if they initially earn zero economic profits?

• A) A fall in demand
• B) A unit tax on output
• C) An increase in total fixed costs
• D) A decrease in input prices

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Definitions:

Secure Attachment

A strong and healthy emotional bond between a child and caregiver, characterized by trust and a sense of safety.

Stranger Anxiety

A developmental situation where infants and young children feel distress and apprehension around unfamiliar people.

Conservation

In cognitive psychology, the understanding that objects conserve properties such as number, length, and volume despite changes in the form or appearance of those objects.

Egocentrism

A mental characteristic where a person cannot comprehend or adopt viewpoints other than their own.