A Perfectly Competitive Firm Producing 100 Units of Output Per

question 191

Multiple Choice

A perfectly competitive firm producing 100 units of output per period finds that: Average total cost is $20;
Average variable cost is $12;
Marginal cost is $18 and increasing;
Price of the product is $15.
This firm should

• A)produce more output
• B)raise the price of its product
• C)reduce production without shutting down
• D)shut down (reduce output to zero)
• E)do nothing (it is currently maximizing profit)

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Definitions:

Structuralism

An approach in various academic disciplines that involves analyzing the structure of systems, often used in psychology to describe the structure of the mind.

Functionalism

A theoretical perspective in the social sciences that focuses on the functions or purposes of various elements of society, understanding each part in terms of how it contributes to societal stability and cohesion.

Industrial/Organizational Psychologist

Professionals specialized in applying psychological principles and methods to workplace issues, aiming to improve productivity, work-life balance, and employee satisfaction.

Psychotherapy

A form of treatment aimed at improving mental health, which involves talking with a therapist to address emotional issues and negative behaviors.