If the Average Total Cost Is $10 and the Price

question 36

Multiple Choice

If the average total cost is $10 and the price is $8 at the profit-maximizing quantity, what will happen in the long run in a perfectly competitive market?

• A) More firms will enter the market, pushing the market price lower.
• B) More firms will enter the market, pushing the market price higher.
• C) Some firms will exit the market, pushing the market price lower.
• D) Some firms will exit the market, pushing the market price higher.

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Definitions:

Unconscious Mind

A part of the mind that is not accessible to conscious thought, containing desires, feelings, and memories below the level of conscious awareness.

Profession

A paid occupation, especially one that involves prolonged training and a formal qualification.

Psychology

The scientific study of the mind and behavior, encompassing various aspects of conscious and unconscious experience.

Evolutionary Psychology

A theoretical approach in the social and natural sciences that examines psychological structure from a modern evolutionary perspective.