Assume Robbie's Robots Operates in a Perfectly Competitive Market Producing

question 31

Multiple Choice

Assume Robbie's Robots operates in a perfectly competitive market producing 3,000 robots per day. At this output level, the selling price is $800 per robot and the marginal cost is $625 per robot. To maximize profits, Robbie's Robots should

• A) make no adjustments as they are already maximizing their profits.
• B) increase their output.
• C) decrease their output.
• D) stop producing since it is earning a loss.

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Definitions:

Transvestite

An individual who dresses in clothing traditionally worn by the opposite sex, often for expressing a different gender identity or for other personal reasons, without necessarily identifying as transgender.

Transsexual

A term used to describe an individual whose gender identity does not align with their biological sex and who may seek to transition through medical intervention.

Exhibitionist

A person who experiences a psychological urge to display their genitals to others.

Dominatrix

A woman who takes the dominant role in BDSM activities and practices.