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:

Federal Unemployment Tax

A United States federal tax imposed on employers to fund state workforce agencies. Employers pay this tax to the Internal Revenue Service (IRS) to cover the costs of unemployment compensation to workers who have lost their jobs.

Wage And Tax Statement

A document, often referred to as a W-2 form, issued by employers to employees detailing the employee's wages and taxes withheld during the year.

Voluntary Deductions

Employee-elected deductions from their payroll for benefits, contributions, or savings plans.

Salaries And Wages Payable

A liability account that records the amounts owed to employees for work performed that has not yet been paid.