Figure 14-2 Suppose a Firm Operating in a Competitive Market Has the Has

question 70

Multiple Choice

Figure 14-2
Suppose a firm operating in a competitive market has the following cost curves:
-Refer to Figure 14-2. If the market price is Pb, in the short run the firm will earn

• A)positive economic profits.
• B)negative economic profits but will try to remain open.
• C)negative economic profits and will shut down.
• D)zero economic profits.

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Definitions:

Defense Mechanism

Psychological strategies employed unconsciously to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Displacement

A defense mechanism in which an individual redirects emotion or reaction from the original source to another target.

Reaction Formation

a psychological defense mechanism where an individual unconsciously replaces unacceptable thoughts or feelings with their opposites.

False Consensus Effect

The belief that others share your opinions.