Refer to the Data Provided in Table 9 -Refer to Table 9

question 119

Multiple Choice

Refer to the data provided in Table 9.4 below to answer the question(s) that follow.
Table 9.4
$$\begin{array} { c c c c c c c } \text { q } & \text { TFC } & \text { TVC } & \text { TC } & \text { MC } & \text { AVC } & \text { ATC } \\\hline 0 & \$ 100 & \$ 0 & \$ 100 & - - & - - & - - \\\hline 1 & 100 & 40 & 140 & 40 & 40 & 140 \\\hline 2 & 100 & 60 & 160 & 20 & 30 & 80 \\\hline 3 & 100 & 90 & 190 & 30 & 30 & 63.33 \\\hline 4 & 100 & 124 & 224 & 34 & 31 & 56 \\\hline 5 & 100 & 180 & 280 & 56 & 36 & 56 \\\hline 6 & 100 & 264 & 364 & 84 & 44 & 60.67 \\\hline 7 & 100 & 372 & 472 & 108 & & 67.42 \\\hline\end{array}$$
-Refer to Table 9.4. The market price is $84 and this firm is producing four units of output. Which of the following would you recommend to this firm?

• A) Continue producing four units of output, because the firm is able to make an economic profit.
• B) Increase output to six units, so that marginal cost equals marginal revenue.
• C) Reduce price to $34, so that marginal cost will equal marginal revenue at 4 units of output.
• D) Increase output to seven units so that price is less than marginal cost.

---

Definitions:

Perceptual Organization

The process by which the brain structures sensory input into meaningful patterns and objects, enabling humans to perceive the environment in a coherent way.

Good Continuation

A factor in visual grouping; we tend to perceive contours in a way that alters their direction as little as possible.

Figure-Ground Separation

The visual ability to distinguish an object (the figure) from its surrounding background (the ground).

Feature Detectors

Neurons in the retina or brain that respond to specific attributes of the stimulus, such as movement, orientation, and so on.