In the Short Run, a Profit-Maximising Firm's Decision to Produce

question 32

Multiple Choice

In the short run, a profit-maximising firm's decision to produce should be guided by whether

• A)it makes a profit.
• B)its marginal profit is maximised.
• C)its total revenue exceeds its fixed cost.
• D)its total revenue covers its variable cost.

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Definitions:

Projection

An ego defense mechanism whereby individuals attribute to other people characteristics or impulses they do not wish to acknowledge in themselves.

Defecating

The act of expelling feces from the body's large intestine through the anus.

Ego Ideal

A component of the personality comprising the standards and aspirations for behaviors that one strives to achieve.

Id

in Freudian psychoanalysis, it represents the part of the human psyche that is unconscious and contains the basic drives and instinctual desires.