A Firm in a Competitive Market Has the Following Cost

question 188

Multiple Choice

A firm in a competitive market has the following cost structure: If the market price is $16, this firm will

• A) produce 4 units of output in the short run and exit in the long run.
• B) produce 5 units of output in the short run and exit in the long run.
• C) produce 5 units of output in the short run and face competition from new market entrants in the long run.
• D) shut down in the short run and exit in the long run.

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Definitions:

Personality

A unique set of emotional, thought, and behavioral patterns that define an individual's personal style of interacting with the physical and social environment.

Most Basic Personality System

a conceptual term that could refer to the fundamental aspects or mechanisms underlying human personality.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, superego, and reality, playing a key role in decision making and sense of self.

Id

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