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:

Long Bonds

Bonds with maturities typically longer than 10 years, often used to lock in interest rates.

Variance

A statistical measure that captures the dispersion of a set of data points around their mean, indicating how spread out the data is.

Probability Range

A span of values within which a random variable is expected to fall, governing the likelihood of different outcomes.

Risk Premium

The return in excess of the risk-free rate of return that investors demand for choosing a risky investment.