Consider the Short-Run and Long-Run Cost Curves for a Firm

question 30

Multiple Choice

Consider the short-run and long-run cost curves for a firm.If there is an improvement in the firm's technology,

• A)the firm will move to a lower point on both its long-run and short-run average cost curves.
• B)the firm will move to a lower point on its long-run average cost curve only.
• C)both the long-run and short-run average cost curves will shift downward.
• D)there will be a downward shift in the long-run average cost curve but not in the short-run average cost curve.
• E)there will be no change in the cost curves in the long run.

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Definitions:

Peripheral Route

A mode of persuasion that involves less cognitive processing, relying on peripheral cues like attractiveness or celebrity status, as proposed in the Elaboration Likelihood Model.

Need For Cognition

a personality trait that signifies a person's enjoyment of engaging in deep thought and the enjoyment of intellectual activities.

Self-Monitoring

An individual difference in people’s desire and ability to adjust their self-presentations for different audiences.

Psychological Reactance Theory

A theory which proposes that people value thinking and acting freely. Therefore, situations that threaten their freedom arouse discomfort and prompt efforts to restore freedom.