If a Comparison Between Average Cost and Price Reveals Whether

question 39

Multiple Choice

If a comparison between average cost and price reveals whether a firm is earning profits, then a comparison between average variable cost and price reveals

• A) that if the market price exceeds average cost, profits will be positive.
• B) that if the market price is below average cost, then profits will be negative.
• C) total revenues are the quantity produced multiplied by the price.
• D) whether the firm is earning profit if fixed costs are left out of the calculation.

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Definitions:

Affective Component

The emotional aspect of attitudes, which describes how people feel about something.

Specific Feelings

Distinct emotional responses to certain stimuli, which can be clearly identified and described.

Emotional Dissonance

The conflict or inconsistency between the emotions people feel and the emotions they project or are expected to display.

Affective Events Theory

A psychological model that explains how workplace events cause emotional reactions, which in turn can influence employees' job performance and satisfaction.