A Profit-Maximizing Price Taker Must Decide

question 125

Multiple Choice

A profit-maximizing price taker must decide

• A) only on what price to charge,taking output as fixed.
• B) both what price to charge and how much to produce.
• C) only on how much to produce,taking price as fixed.
• D) only on which industry to join,taking price and output as fixed.
• E) only on how much revenue it wishes to collect.

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Definitions:

Equilibrium Price

The market value at which there's a perfect match between quantity of goods available and quantity desired by buyers.

Cockatoos

A type of large, often colorful and noisy parrot native to Australia and surrounding islands.

Smuggled

Refers to the act of moving goods illegally into or out of a country, bypassing customs regulations and taxes.

Production Function

A model in mathematics that delineates how production inputs are related to the output generated.