If Total Variable Cost Exceeds Total Revenue at All Output

question 72

Multiple Choice

If total variable cost exceeds total revenue at all output levels, a perfectly competitive firm

• A)should produce in the short run.
• B)is making short-run profits.
• C)should shut down in the short run.
• D)has covered its fixed cost.

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Definitions:

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

External Locus of Control

A belief that one's successes or failures result from external factors beyond one's control.

Rotter

Julian B. Rotter, a psychologist known for his work on locus of control, a theory about how people perceive the source of life events and outcomes as either within themselves or externally.

Big Five Model

A psychological theory that describes human personality through five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.