When a Perfectly Competitive Firm Finds That Its Market Price

question 244

Multiple Choice

When a perfectly competitive firm finds that its market price is below its minimum average variable cost, it will sell

• A)the output where marginal revenue equals marginal cost.
• B)any positive output the entrepreneur decides upon because all of it can be sold.
• C)nothing at all; the firm shuts down.
• D)the output where average total cost equals price.

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Definitions:

Erogenous Zones

Areas of the body that experience heightened sensitivity and can produce sexual pleasure when stimulated.

Psychosexual Stages

A Freudian concept that describes five stages of childhood development, each focused on pleasure from a different part of the body.

Freud

Sigmund Freud was an Austrian neurologist who founded psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Defense Mechanism

A defense mechanism is a psychological strategy unconsciously used to protect oneself from anxiety or unacceptable thoughts and feelings.