If a Competitive Firm Finds That It Maximizes Short-Run Profits

question 37

Multiple Choice

If a competitive firm finds that it maximizes short-run profits by shutting down,which of the following must be true?

• A) p < AVC for all levels of output.
• B) p < AVC only for the level of output at which p = MC.
• C) p < AVC only if the firm has no fixed costs.
• D) The firm will earn zero profit.

Recognize the characteristics and implications of living in a surveillance society.

Assess the impact of social control and capitalism on societal development.

Understand the effects of complex industrial societies on social control and conformity.

Examine gender dynamics in crime rates and victimization.

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Definitions:

Membership

The state of belonging to a group or organization with a common interest or purpose.

In-Group Favoritism

The tendency to favor members of one's own group over those from external groups in terms of trust, favor, or privilege.

Tajfel's Theory

This social psychology theory posits that group membership creates in-group/self-categorization and enhancement in ways that favor the in-group at the expense of the out-group.

Award Money

Financial compensation given as a reward for excellence, achievement, or winning in various contexts such as contests, competitions, or incentives.