If a Firm Is Producing Where Its LMC = Price

question 52

Multiple Choice

If a firm is producing where its LMC = price and the LMC is equal to LAC, then it would do better in the long run by

• A)Increasing output with its existing plant until LMC equals price
• B)Increasing plant size until LMC and SAC are identical and equal to price
• C)Decreasing plant size until LAC, SAC and price are equal
• D)Changing nothing because it is already at the long run profit maximizing point

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Definitions:

Self-Enhancement

A psychological process whereby individuals seek to improve their self-esteem or self-worth through personal development, achievements, or by acquiring favorable views from others.

Narcissistic Personality

A personality disorder characterized by a long-term pattern of exaggerated self-importance, need for admiration, and a lack of empathy toward others.

Self-Esteem

The personal judgment of worthiness that indicates the extent to which an individual views themselves in a positive or negative light.

Self-Esteem

The perception and evaluation of one's own worth, encompassing beliefs and emotions about oneself.