Exhibit 12-2 Refer to Exhibit 12-2

question 164

Multiple Choice

Exhibit 12-2 Refer to Exhibit 12-2.When the market price equals $54,the firm:

• A) should shut down.
• B) should continue operating temporarily despite an economic loss because the firm is able to cover all of its variable costs.
• C) should continue operating temporarily despite an economic loss because the firm is able to cover a portion of its fixed costs.
• D) should continue operating because the firm is making a profit.

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Definitions:

Case Study Method

A research strategy that involves the intensive examination of an individual or group to explore the causes of underlying principles or phenomena.

Behaviorism

The school of psychology that views observable, measurable behavior as the appropriate subject matter for psychology and emphasizes the key role of environment as a determinant of behavior.

John B. Watson

An American psychologist who established the psychological theory of behaviorism, emphasizing the study of observable behavior.

Unconscious Mind

Refers to the part of the mind that is not within one's immediate awareness, containing thoughts, memories, and desires believed to influence behavior.