If a Firm Is Making a Short-Run Economic Profit

question 40

Multiple Choice

If a firm is making a short-run economic profit,

• A)price = AFC.
• B)price = ATC.
• C)price is greater than average total cost.
• D)price is less than average variable cost.

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Definitions:

Maturity Principle

The concept that individuals become more conscientious and agreeable as they age, showing fewer negative or antisocial behaviors.

Self-Serving Bias

The common human tendency to attribute personal successes to internal factors while blaming failures on external factors.

Narcissism

A psychological condition characterized by self-centeredness, a lack of empathy for others, and an excessive need for admiration.

Agreeableness

Agreeableness is a personality trait characterized by warmth, kindness, and a tendency to cooperate and seek social harmony.