A Price Taker's Output Price Is $5 and the Firm

question 119

Multiple Choice

A price taker's output price is $5 and the firm is producing 37 units with a marginal cost of $3.The firm should

• A) lower its price.
• B) decrease production.
• C) increase production.
• D) raise its price.
• E) lay off workers.

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Definitions:

Mediating Processes

Intermediate mechanisms through which input factors transform into outcomes, often used in the context of psychological and organizational studies.

Achievement Orientation

A focus on setting and meeting high standards and achievements, whether personal or professional.

Performance Orientation

An aspect of organizational culture focusing on outcomes and results, emphasizing the achievement of goals and standards of excellence.

External Locus

A belief system where individuals perceive their successes or failures to be the result of external forces or the environment.