If Firms Are Producing at a Profit-Maximizing Level of Output

question 104

Multiple Choice

If firms are producing at a profit-maximizing level of output where the price exceeds the average total cost:

• A) accounting profits must be positive, but economic profits are zero.
• B) economic profits must be positive.
• C) other firms will exit the market.
• D) firms will exit the market.

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Definitions:

Orgasm

A peak of sexual excitement, characterized by strong feelings of pleasure and by a series of involuntary contractions of the muscles of the genitals.

Pregnant

The state of carrying a developing embryo or fetus within the female body.

Sexually Transmitted Infections

Infections that are primarily spread through sexual contact, including diseases like HIV, gonorrhea, and chlamydia.

Homosexual

An adjective used to describe individuals who are romantically or sexually attracted to people of the same sex.