A Competitive Firm Has a Continuous Marginal Cost Curve

question 43

True/False

A competitive firm has a continuous marginal cost curve.It finds that as output increases, its marginal cost curve first rises, then falls, then rises again.If it wants to maximize profits, the firm should never produce at a positive output where price equals marginal cost and marginal cost decreases as output increases.

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Definitions:

Well-Organized Narratives

Stories or accounts that are structured in a coherent and logical manner, making them easy to follow and understand.

Habituation Paradigm

A research technique that takes advantage of a baby’s tendency to orient to new stimulation and to habituate to repeated or old stimulation. Once an infant habituates to one stimulus a new stimulus can be presented. The baby’s reorienting to the new stimulus (or failure to do so) reveals whether or not she perceives or notices the differences between the stimuli.

Sensorimotor Period

A stage in Piaget’s theory of cognitive development, from birth to about 2 years of age, where infants learn about the world through their sensory and motor interactions.