Statement I: in the Short Run a Firm Has Two

question 41

Multiple Choice

Statement I: In the short run a firm has two options: stay in business or go out of business.
Statement II: In the short run there are no fixed costs.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Social Pressures

The influence exerted by society or social groups on individuals, encouraging them to conform to specific norms or behaviors.

Social Psychologists

Scientists who study how individuals think, feel, and behave in social contexts, including how people influence and interact with each other.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, politics, or being similar to others in a given group.

Group Behavior

The study of how group dynamics influence individual behavior, decision-making, and social interactions within a group setting.