If a Competitive Firm in the Short Run Finds That

question 28

Multiple Choice

If a competitive firm in the short run finds that its average total cost is below the price, the firm

• A) has an economic loss.
• B) should shut down.
• C) should exit the industry.
• D) has an economic profit.

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Definitions:

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, or preferences, which may involve synthesizing different types of information.

Puzzle Box

A problem-solving apparatus used in experiments, especially in animal psychology, to study learning and ability to solve problems.

Skinner Box

A controlled environment used in behavior analysis to study animal behavior, named after B.F. Skinner, an American psychologist and behaviorist.

Monkeys

Primates that are smaller than apes, often with tails, known for their social nature and intelligence.