Examlex

Solved

Why Does It Make Sense for a Firm to Shut

question 68

Essay

Why does it make sense for a firm to shut down in the short run if the price falls below minimum average variable cost?


Definitions:

Encoding Specificity Principle

A principle in psychology that suggests the recall of information is more effective when the context at the time of encoding matches the context at the time of retrieval.

State-Dependent Memory

The phenomenon where information learned in a particular state or context is better recalled when in that same state or context.

Priming

A psychological effect whereby exposure to one stimulus influences the response to a subsequent stimulus, without conscious guidance or intention.

False Memories

An inaccurate or distorted recollection of an event that feels very real to the person remembering it.

Related Questions