The "Invisible Hand" in a Competitive Market Pushes the Firms

question 165

Multiple Choice

The "invisible hand" in a competitive market pushes the firms in the market to

• A)charge a price that is equal to their marginal revenue.
• B)produce an output level that allows them to earn some positive economic profits.
• C)use resources and produce output that maximize consumer and producer surplus.
• D)operate where their individual demand curve is above their long-run average cost curve.

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Definitions:

Posthypnotic Suggestion

involves instructions given to a person under hypnosis that are to be executed after the hypnosis session has ended, often used to change behaviors.

Mindfulness Meditation

A practice of maintaining a nonjudgmental state of heightened or complete awareness of one's thoughts, emotions, or experiences on a moment-to-moment basis.

Change Blindness

A failure to be aware of visual information when one’s attention is directed elsewhere.

Automatic Processing

Automatic processing involves unconscious, effortless mental operations that allow us to perform tasks without deliberate attention to detail.