The Figure Given Below Shows the Revenue and Cost Curves

question 22

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-A firm should not necessarily shut down if:

• A)total revenue is less than total variable cost.
• B)firms suffer losses and the price is above variable costs.
• C)the demand curve facing the firm lies below its average variable cost curve.
• D)price is less than average variable cost.
• E)firms suffer losses and the price is below variable costs.

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Definitions:

Locus of Control

A psychological concept that refers to individuals' beliefs about the extent to which they can control events affecting them.

Gratification

The satisfaction or pleasure felt when a need or desire is fulfilled.

Self-Cognitive Perspective

An approach in psychology that emphasizes the role of cognitive processes in understanding the self, including thoughts, beliefs, and attitudes towards oneself.

Personal Helplessness

A state in which an individual feels they lack control over situations and outcomes in their life, often leading to decreased motivation and depression.