Which Would Indicate That a Firm Is Operating Under Conditions

question 15

Multiple Choice

Which would indicate that a firm is operating under conditions of pure competition and is being productively efficient?

• A) It is making economic profits in the long run.
• B) Marginal cost equals average variable cost.
• C) It produces at the minimum average total cost.
• D) Its marginal revenue is less than average revenue.

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Definitions:

Rewarded

The process or act of receiving a benefit, recognition, or reinforcement for one's actions or behavior, often used in the context of behaviorist theories of learning.

Internally Motivated

Driven by internal rewards, such as personal satisfaction, rather than external rewards like money or status.

Womb Envy

A concept in Neo-Freudian psychology suggesting that males may feel envy towards the biological abilities of females, such as pregnancy and childbirth.

Margaret Mahler

A psychoanalyst known for her work in child development and her theories on the separation-individuation process of infants.