Teddy's Bear Shop Operates in a Perfectly Competitive Market Where

question 90

Multiple Choice

Teddy's Bear Shop operates in a perfectly competitive market where the prevailing price is $15.Teddy's marginal cost curve crosses his average total cost curve at $20.The marginal cost curve crosses his average variable cost curve at $17.In the short run,Teddy's Bear Shop

• A)should operate at a lower output level where it can suffer less of an economic loss
• B)will suffer an economic loss,but should continue to operate at the minimum of its average variable costs
• C)will just break even,with neither a profit nor a loss,and should operate
• D)will suffer an economic loss and should shut down
• E)should operate at a higher output level where it can suffer less of an economic loss

---

Definitions:

American

pertains to anything related to the United States of America, including its people, culture, or geography.

Humanist Psychology

A psychological perspective that emphasizes the study of the whole person, looking at human behavior not only through the eyes of the observer but also through the eyes of the person doing the behaving.

Scientific Understanding

The comprehension and knowledge of scientific concepts, theories, and empirical evidence, as well as the methods used to obtain them.

Collectivist Cultures

Societies that prioritize the needs and goals of the group over individual desires or ambitions.