A Firm Will Continue to Produce in the Short Run

question 229

Multiple Choice

A firm will continue to produce in the short run even though economic profits are negative as long as

• A) the amount of the loss is no greater than the amount of fixed cost.
• B) MC = MR.
• C) it earned positive economic profits last year.
• D) it has fixed obligations to pay.

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Definitions:

Vivid Imagery

Strong, clear, and detailed description or visualization that appeals to the senses.

Five Motivation Levels

A hierarchical model that outlines the progression of human needs, from basic physical necessities to self-actualization.

Physical Decline

The gradual loss of physical capabilities and functions that occurs as part of the aging process.

Social Need

A requirement for belonging and acceptance within a group or society, influencing human behavior and motivation.