In the Short Run, a Profit-Maximizing Firm in a Price-Taker

question 105

Multiple Choice

In the short run, a profit-maximizing firm in a price-taker market will definitely stop production if

• A) economic profit is zero.
• B) price falls below average total cost.
• C) price is less than average variable cost.
• D) it cannot completely cover its fixed costs.

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Definitions:

Obestatin

A hormone produced by the stomach, associated with reducing appetite and potentially playing a role in energy balance.

Leptin

A hormone produced by adipose (fat) cells that regulates energy balance by inhibiting hunger.

Drinking

The act of consuming liquids; in many contexts, it specifically refers to the consumption of alcoholic beverages.

Instrumental Aggression

Aggressive behavior aimed at achieving a specific goal or objective, rather than stemming from anger or frustration.