In the Short Run, a Competitive fiRm Will Maximize Profits

question 61

Multiple Choice

In the short run, a competitive firm will maximize profits by expanding output when _____.

• A) average total cost is greater than price
• B) marginal cost is greater than price
• C) price is greater than marginal cost
• D) price is greater than average total cost

---

Definitions:

Computer-Mediated Communication

The exchange of messages between two or more individuals through the use of digital devices, such as computers and smartphones.

Informational Influence

A social influence process where an individual conforms to the opinions or behaviors of a group, believing the group has more accurate information.

Persuasive Arguments

Statements or reasons given with the aim of influencing the beliefs or actions of others through logic and reasoning.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members.