-Tammy Sells Woolen Hats in a Perfectly Competitive Market

question 175

Multiple Choice

-Tammy sells woolen hats in a perfectly competitive market. The marginal cost of producing 1 hat is $24. The marginal cost of producing a second hat is $26 and the marginal cost of producing a third hat is $28. The market price of a hat is $26. To maximize profit, Tammy produces ________ per day.

• A) 1 hat
• B) 3 hats
• C) 2 hats
• D) as many hats as possible

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Definitions:

Organizational Politics

The application of influence and social connections within an organization to bring about changes that favor either the individual or the organization itself.

Objective Standards

Universal benchmarks or criteria that are not influenced by personal feelings, interpretations, or prejudice.

Manipulating Others

The act of skillfully influencing or controlling others to one's advantage, often in an unfair or deceitful way.

Organizational Politics

Refers to activities within a company that are aimed at improving someone's status or position and are typically at the expense of others.