The Figure Given Below Shows the Demand and Cost Curves

question 18

Multiple Choice

The figure given below shows the demand and cost curves of a perfectly competitive firm.Figure: 10.4
D: Demand curve
MC: Marginal cost curve
ATC: Average-total cost curve
AVC: Average-variable-cost curve
-Suppose a firm in a perfectly competitive market is operating at its profit-maximizing level of output. Will the firm suspend operations if it faces a reduction in the price it can charge for its product?

• A)No, because it can always raise its prices in the short run.
• B)No, because it can always raise its prices in the long run.
• C)No, as long as the firm earns sufficient revenue to pay all of the variable costs.
• D)Yes, since it never makes sense to operate at a loss, even in the short run.
• E)No, because it always makes sense to operate at a loss, even in the long run.

Recognize the effect of vicarious punishment versus vicarious reinforcement on behavior modification.

Acknowledge the importance of self-efficacy in learning and behavior change.

Appreciate the relevance of social learning theory in explaining human learning through observation and imitation.

Understand the basics and applications of research designs in developmental psychology.

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Definitions:

Negligent

Failing to take proper care in doing something, leading to harm or injury to others.

Sexual Maturation

The process of acquiring sexual maturity and reaching reproductive capability.

Puberty

The developmental stage in humans and other primates marked by the onset of sexual maturity and physical growth.

Reproducing

The biological process or action of producing offspring or new individuals of the same kind.