If in the Short Run,at the Profit Maximizing Level of Output,the

question 104

Multiple Choice

If in the short run,at the profit maximizing level of output,the average revenue curve of a competitive firm lies above the average cost curve:

• A)the firm is incurring losses.
• B)the firm is just able to cover its total cost.
• C)the firm enjoys above-normal profits.
• D)the firm must shut down.
• E)the firm is barely able to cover its variable costs.

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Definitions:

Relevance

The quality or state of being closely connected or appropriate to the matter at hand, often used in discussions of information, research findings, or arguments.

Needs

Fundamental requirements or necessities for physical and psychological well-being, such as food, shelter, esteem, and belonging.

Construction Corollary

A principle in George Kelly's personal construct theory that suggests people anticipate events by the meanings they place on their experiences.

Compatible Groups

Clusters of individuals or entities that exhibit a high degree of similarity or cohesion in preferences, values, or characteristics, facilitating harmonious interactions.