Suppose a Price Taker Knows That It Is Not Going

question 127

Multiple Choice

Suppose a price taker knows that it is not going to shut down but it is going to earn a loss.It should pick the output level where

• A) total cost is minimized.
• B) price equals marginal cost.
• C) total revenue is maximized.
• D) the cost of the variable factors of production is minimized.
• E) price is greater than marginal cost.

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Definitions:

Hetch Hetchy

A valley in Yosemite National Park, which was controversially dammed in the early 20th century to provide water to San Francisco.

Conservationists

Individuals or groups who advocate for the preservation and protection of the environment and wildlife.

Sierra Club

An environmental organization established in the United States, dedicated to the protection and preservation of the natural environment through advocacy and conservation efforts.

Hetch Hetchy

A valley in Yosemite National Park, controversially dammed in the early 20th century to provide water to San Francisco.