If a Firm Adopts a Production Process That Is Costly

question 90

Multiple Choice

If a firm adopts a production process that is costly in order to reduce pollution,the result is

• A)A decrease in the firm's MC curve and a decrease in the firm's profits.
• B)An increase in the firm's ATC curve and an increase in the firm's profits.
• C)A decrease in the profit-maximizing rate of output and a decrease in the firm's profits.
• D)A decrease in the firm's ATC curve and an increase in the firm's profits.

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Definitions:

Oral Stage

The first stage in Freud's psychosexual development theory, occurring from birth to 18 months, where pleasure centers on the mouth.

Anal Stage

A phase in Freudian psychosexual development where a child's focus of pleasure is on controlling bladder and bowel movements, typically occurring between ages 18 months to 3 years.

Psychoanalytic Thought

A body of theories first developed by Sigmund Freud that emphasizes the influence of the unconscious mind on behavior, the importance of childhood experiences, and the roles of conflict between conscious and unconscious forces.

Libido

In psychoanalytic theory, a term used to describe sexual desire or the driving force behind all human behavior according to Freud.