If a Firm's Average Total Cost Is Less Than Price

question 78

Multiple Choice

If a firm's average total cost is less than price where MR = MC

• A)the firm should shut down.
• B)the firm should raise its price.
• C)the firm should continue to produce the output it is producing.
• D)the firm should cut back on its output to lower its cost.

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Definitions:

Carl Rogers

An influential psychologist who developed client-centered therapy and emphasized the importance of the self-concept in understanding human behavior.

Ivan Pavlov

A Russian physiologist known for his work in classical conditioning, demonstrating how stimuli can trigger conditioned responses in dogs.

Positive Reinforcement

A behavioral strategy that involves the addition of a rewarding stimulus following a desired behavior, aimed at increasing the likelihood of the behavior’s recurrence.

Negative Reinforcement

A behavioral principle where the removal of an adverse stimulus strengthens or increases the likelihood of a desired behavior.