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:

Parental Philosophy

The set of beliefs and principles that guide parents in raising their children, often influencing parenting style and practices.

Behavioral Problems

Actions or behaviors by an individual that are disruptive, harmful, or outside of societal norms, often needing intervention.

Suppress Sexual Urges

The conscious or unconscious attempt to control or diminish one's own sexual desires and impulses.

Projection

A defense mechanism where one attributes their own unacceptable thoughts or feelings to someone else.