In the Standard Model of Pure Competition in the Short

question 141

Multiple Choice

In the standard model of pure competition in the short run, a profit-maximizing firm will produce the output quantity where the gap between

• A)marginal revenue and marginal cost is the largest, with revenue higher than cost.
• B)average revenue and average cost is the largest, with revenue higher than cost.
• C)total revenue and total cost is the largest, with revenue higher than cost.
• D)average revenue and average variable cost is the largest.

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Definitions:

Freud

Refers to Sigmund Freud, the founder of psychoanalysis, known for his theories of the unconscious mind, the Oedipus complex, and the mechanism of repression.

Reality Principle

A psychoanalytic concept that represents the ability of the mind to assess the external world and act upon it accordingly, as opposed to acting on the pleasure principle.

Freud

An Austrian neurologist and the founder of psychoanalysis, known for his theories on the unconscious mind, developmental stages, and defense mechanisms.

Ego

Refers to the part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.