In the Standard Model of Pure Competition, a Profit-Maximizing Firm

question 250

Multiple Choice

In the standard model of pure competition, a profit-maximizing firm will shut down in the short run if price is below

• A)marginal cost.
• B)average cost.
• C)average fixed cost.
• D)average variable cost.

---

Definitions:

Social Inhibition

The tendency to perform tasks more poorly or act less freely in the presence of others.

Low Extraversion

This trait refers to a lower level of outgoingness, sociability, and energy in engaging with the external world, compared to higher levels of introversion.

Neuroticism

How worried and angry a person is; part of the Big Five personality traits.

Smoking Cigarettes

The act of inhaling and exhaling the smoke of tobacco or a drug.