A Price Taker's Output Price Is $8 and the Firm

question 22

Multiple Choice

A price taker's output price is $8 and the firm is producing 77 units with a marginal cost of $11.The firm should

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

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Definitions:

Competitive Advantage

A unique attribute or ability a company has that enables it to outperform its competitors.

Benefits

Advantages or perks provided to employees in addition to their regular compensation, such as health insurance, retirement plans, and paid time off.

Social Responsibility

The obligation of companies to act in ways that benefit society at large, beyond their own interests or profitability.

Strategic Planning

The process of defining a business's direction and making decisions on allocating its resources to pursue this strategy, including its capital and people.