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

question 121

Multiple Choice

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

• A)accounting profits may be negative.
• B)accounting profits must be zero.
• C)economic profits may be positive.
• D)economic profits must be zero.

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Definitions:

Theoretical Orientation

A framework or perspective in psychology that guides how a therapist or researcher understands and approaches the client or study subject.

Severely Criticized

Subjected to harsh or stern judgment, often in a way that is more extreme than warranted.

Reinforce Clinging

The act of strengthening or encouraging dependent or overly needy behavior in relationships.

Dependent Personality Disorder

A psychological condition characterized by an excessive need to be cared for, leading to submissive and clinging behavior.