A Perfectly Competitive Firm Is Currently Producing Where Price Is

question 125

Multiple Choice

A perfectly competitive firm is currently producing where price is $8 and both marginal cost and average variable cost are $9.To maximize profit or minimize loss in the short run, this firm should

• A)raise its price
• B)increase its output
• C)reduce its output
• D)lower its price
• E)shut down

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Definitions:

Henri Fayol

A French engineer and management theorist known for developing one of the earliest theories of management.

Organizing

The act of arranging or structuring elements in a systematic way to achieve objectives and maintain order.

Feeling of Power

The emotion or perception of having control or influence over others or situations.

High Income

High income refers to earnings that are significantly above the average or median income level within a given region or socioeconomic context.