If at the MC = MR Output, AVC Exceeds Price

question 149

Multiple Choice

If at the MC = MR output, AVC exceeds price,

• A) new firms will enter this industry.
• B) the firm should produce the MC = MR output and realize an economic profit.
• C) some firms should shut down in the short run.
• D) the firm should expand its plant.

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Definitions:

Ineffective Punishment

A form of discipline that fails to decrease the occurrence of a behavior; it may lack consistency, immediacy, or connection to the specific behavior.

Fear

A basic emotion induced by a perceived threat, leading to confrontation with or avoidance of said threat.

Rebellious

describes a person, behavior, or action showing a desire to resist authority, control, or convention.

Target Response

The desired behavior or outcome that a study or campaign aims to elicit from its subjects or audience.