At Its Present Rate of Output, 200 Units, a Perfectly

question 204

Multiple Choice

At its present rate of output, 200 units, a perfectly competitive firm has total cost of $10, 000, marginal cost of $38, and fixed cost of $2, 000, and it charges the market price of $38 per unit.To maximize profit or minimize loss, this firm should

• A)increase output
• B)reduce output but not to zero
• C)maintain the present rate of output
• D)shut down
• E)raise the price

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Definitions:

Rationality

The quality of being based on or in accordance with reason or logic.

Cognitive Complexity

An individual's ability to understand and process multiple and detailed aspects of information simultaneously.

Diverse Influences

Various factors or elements from a wide range of sources that affect or shape individuals or systems.

Authoritarian Parenting

A parenting style characterized by high demands and low responsiveness, where parents expect their orders to be obeyed without explanation.