In a Perfectly Competitive Market, If a Firm Finds It

question 223

Multiple Choice

In a perfectly competitive market, if a firm finds it is producing an amount of output such that its marginal cost exceeds its price, it will

• A) immediately shut down for the short run.
• B) be maximizing profits.
• C) increase its output to increase its profit.
• D) decrease its output to increase its profit.

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Definitions:

Broca's Area

A region in the frontal lobe of the dominant hemisphere of the brain associated with language processing, speech production, and comprehension.

Muscle Movements

The action of muscles contracting and relaxing, which results in movement of body parts or the entire body.

Speech

Speech is the verbal expression of thoughts, feelings, or information, made possible through the coordinated use of the vocal tract, including the tongue, throat, and lips.

Brain Plasticity

The capacity of the nervous system to change its structure and function in response to experience or injury.