If a Firm in the Long Run Produces Less Than

question 86

Essay

If a firm in the long run produces less than its efficient scale,it
A) should raise its markup to increase its profit.
B) should lower its markup to increase its profit.
C) cannot be a perfectly competitive firm.
D) should not advertise to increase its profit.
E) must have its markup equal to zero.

• A) should raise its markup to increase its profit.
• B) should lower its markup to increase its profit.
• C) cannot be a perfectly competitive firm.
• D) should not advertise to increase its profit.
• E) must have its markup equal to zero.

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Definitions:

Retrieval Cues

Stimuli that assist in the recall of information stored in long-term memory by providing a reminder or prompt.

Long-term Potentiation

Long-term potentiation is a long-lasting enhancement in signal transmission between neurons, believed to be a biological mechanism underlying learning and memory.

Implicit Memories

Memories that influence thoughts and behaviors without conscious awareness, such as skills and conditioned responses.

Mood-congruent Memory

The inclination to remember events that match one's present emotional state.