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

question 234

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 $800 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.

---

Definitions:

Export

The process of shipping goods or services from one country to another country for sale or trade.

Specialize

The process of focusing efforts and resources on a narrow area of expertise or production to increase efficiency and proficiency.

Comparative Advantage

The ability of a country, company, or individual to produce a good or service at a lower opportunity cost than competitors.

Autarky

An economic policy or situation in which a country is self-sufficient and does not engage in international trade.