Consider a Perfectly Competitive Firm in the Short Run

question 153

Multiple Choice

Consider a perfectly competitive firm in the short run.Assume that it is sustaining economic losses but continues to produce at the profit-maximizing (loss-minimizing) output.Which statement is FALSE?

• A)Marginal cost is less than average total cost.
• B)Marginal cost is equal to marginal revenue.
• C)Price is equal to marginal cost.
• D)Marginal cost is less than average variable cost.

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Definitions:

Id

In Freudian psychoanalytic theory, the part of the mind that is the source of instinctual impulses and demands for immediate satisfaction of basic needs.

Center of Consciousness

The focal point of awareness or the subjective perspective from which an individual experiences reality.

Principles of Psychic Energy

Theoretical concepts in psychology that describe the dynamic allocation of mental or emotional effort.

Principle of Equivalence

The idea that different stimuli can be perceived as equivalent if they elicit the same response in a given context.