Figure 13-17 -Refer to Figure 13-17.In the Long Run, Why Will the Run

question 160

Multiple Choice

Figure 13-17

-Refer to Figure 13-17.In the long run, why will the firm produce Qf units and not Qg units, which has a lower average cost of production?

• A)Although its average cost of production is lower when the firm produces Qg units, to be able to sell its output the firm will have to charge a price below average cost, resulting in a loss.
• B)At Qg, average cost exceeds marginal cost so the firm will actually make a loss.
• C)At Qg, marginal revenue is less than average revenue which will result in a loss for the firm.
• D)The firm's goal is to charge a high price and make a small profit rather than a low price and no profit.

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Definitions:

Scapegoating

The practice of blaming an individual or group for wrongs that they may not have committed, often to deflect responsibility.

Accentuation

The psychological tendency to exaggerate differences between stimuli or categories when they are perceived as being distinct or separate.

Assimilation-Contrast

A cognitive process where people assimilate new information into their existing views if it's similar but contrast it sharply if it's very different, affecting attitudes and perceptions.

Bus Rage

Intense anger and aggressive behavior by bus drivers or passengers, often in response to stressful conditions or provocations during commutes.