A Competitive Firm Operating in the Short Run Is Maximizing

question 161

Multiple Choice

A competitive firm operating in the short run is maximizing profits and just breaking even.Its costs include a monthly state license fee of $100 that must be paid for as long as the firm operates.If the license fee is raised to $150,what should the firm do to maximize profits in the short run?

• A)increase price
• B)increase output
• C)reduce output
• D)not change output

---

Definitions:

Motivation

The psychological processes that arouse, direct, and maintain human behavior towards attaining some goal.

Social Capital

The networks, relationships, and norms that contribute to societal cooperation and collective well-being.

Social Media Outreach

The practice of using social media platforms to communicate with and engage the audience, often for the purpose of marketing, customer service, or public relations.

Goodwill

An intangible asset reflecting the value of a business entity's reputation, brand, and customer relations that exceed the fair market value of its tangible assets.