If Firms Are Producing at a Profit-Maximizing Level of Output

question 23

Multiple Choice

If firms are producing at a profit-maximizing level of output where the price exceeds the average total cost:

• A)accounting profits must be positive, but economic profits are likely zero.
• B)economic profits must be positive.
• C)other firms will exit the market.
• D)firms will exit the market.

---

Definitions:

Phallic Stage

A phase in Freud's psychosexual development theory, occurring from ages 3 to 6, where children's libido is centered on their genitalia and they develop sexual identification with the same-sex parent.

Theoretical Disagreement

A divergence in opinions or conclusions among experts within a scholarly or scientific field, often leading to debates and further investigation.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for concepts such as the collective unconscious and archetypes.

Alfred Adler

An Austrian psychiatrist and psychotherapist who founded the school of individual psychology and emphasized the importance of the feeling of inferiority in the development of personality.