If a Firm Can Sell Its Product for More Than

question 30

Multiple Choice

If a firm can sell its product for more than its fixed costs,but not for more than its totals costs:

• A)It will shut down
• B)It will lower its fixed costs
• C)It will stop producing that product
• D)It will continue to operate in the short run at a loss
• E)It will increase its production quantity

---

Definitions:

Absolute Threshold

The minimum stimulus intensity that an organism can detect at least 50% of the time.

Selective Attention

The process by which a person focuses on one or a few sensory inputs while ignoring other stimuli.

Perceptual Set

A tendency to perceive or notice some aspects of the available sensory data and ignore others, influenced by expectations, emotions, and culture.

Expectancy Effect

The phenomenon where a researcher's expectations influence the outcome of a study.