A Perfectly Competitive Firm Should Shut Down in the Short-Run

question 126

Multiple Choice

A perfectly competitive firm should shut down in the short-run if price falls below the minimum of

• A) marginal cost.
• B) marginal revenue.
• C) average total cost.
• D) fixed costs.
• E) average variable costs.

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Definitions:

Innate Emotions

Basic feelings or emotions that are hard-wired into the brain at birth through evolution.

James-Lange Theory

An early theory of emotion that proposes emotions occur as a result of physiological reactions to events.

Schachter Theory

A psychological theory suggesting emotions are determined by physiological arousal and the cognitive interpretation of that arousal.

Physiological Cues

Signals from the body that indicate states like stress or hunger, assisting in the understanding of bodily needs or reactions.