The MR = MC Rule Applies

question 4

Multiple Choice

The MR = MC rule applies

• A)in the short run but not in the long run.
• B)in the long run but not in the short run.
• C)in both the short run and the long run.
• D)only to a purely competitive firm.

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Definitions:

Fechner's Law

A principle in psychophysics stating that the perceived intensity of a stimulus changes in proportion to the logarithm of the actual stimulus intensity.

Standard Stimulus

A specific environmental condition or stimuli that is consistently used throughout an experiment as a benchmark against which subjects' reactions or responses are measured.

Jnd

The just noticeable difference, the minimal change in stimulus intensity required to detect a difference between two stimuli.

Constant

A situation or state of affairs that remains unchanged over a period of time.