If at the MC = MR Output, AVC Exceeds Price

question 22

Multiple Choice

If at the MC = MR output, AVC exceeds price,

• A)new firms will enter this industry.
• B)the firm should produce the MC = MR output and realize an economic profit.
• C)some firms should shut down in the short run.
• D)the firm should expand its plant.

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Definitions:

Behavioral Style

Characteristic ways in which individuals behave across different situations, reflecting patterns in actions, reactions, and interactions.

Sleep Schedule

A routine or plan that determines the timing of when a person goes to sleep and wakes up.

Attachment Theory

A psychological model that describes the dynamics of long-term and short-term interpersonal relationships between humans, particularly focusing on how parent-child relationships influence development.

Theorist

An individual who formulates, describes, and explains theories, especially in a given field.