Suppose That a Price Taker Collects Total Revenue of $1,000

question 17

Multiple Choice

Suppose that a price taker collects total revenue of $1,000 when it produces 200 units and the marginal cost of producing 200 units is $5.The firm should

• A) expand production,because price is greater than marginal cost.
• B) contract production,because price is greater than marginal cost.
• C) expand production,because price is less than marginal cost.
• D) contract production,because price is less than marginal cost.
• E) leave production unchanged,because price equals marginal cost.

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Definitions:

Psychogenic Amnesia

A memory disorder characterized by sudden retrograde episodic memory loss, said to occur for a period of time ranging from hours to years due to psychological stress.

Psychogenic Fugue

A dissociative disorder characterized by reversible amnesia for personal identity, including the memories, personality, and other identifying characteristics of individuality.

Neurotransmitter Imbalance

A condition in which there is an imbalance in the levels of neurotransmitters in the brain, often linked to various mental health disorders.

Neurotic Personality

A trait characterized by being prone to emotional instability, anxiety, moodiness, worry, and envy.