An Important Difference Between the Situation Faced by a Profit-Maximizing

question 209

Multiple Choice

An important difference between the situation faced by a profit-maximizing competitive price-searcher firm in the short run and the situation faced by that same firm in the long run is that in the short run,

• A) price may exceed marginal revenue, but in the long run, price will equal marginal revenue.
• B) price may exceed marginal cost, but in the long run, price will equal marginal cost.
• C) price may exceed average total cost, but in the long run, price will equal average total cost.
• D) there are many firms in the market, but in the long run, there are only a few firms in the market.

Comprehend social exchange theory and its conceptualization of social interaction.

Distinguish between macro- and micro-analysis in sociology.

Understand the role of ethnomethodology in uncovering the implicit norms of social interactions.

Identify the basic elements that constitute groups and social division of labor in society.

---

Definitions:

Equity Financing

The method of raising capital through the sale of shares in a company, which gives shareholders ownership rights.

Shareholders

Individuals or entities that own shares in a corporation, giving them a part of the ownership of the company and potentially a claim on part of its assets and earnings.

Municipal Bond

A debt security issued by municipalities to finance their capital expenditures, typically tax-exempt for investors.

Government Bonds

Securities issued by a government to finance its expenditures, offering a fixed interest rate over a certain period.