Suppose That the Firm Has the Following Short Run Cost

question 3

Multiple Choice

Suppose that the firm has the following short run cost data and that B is the only variable input and the price of B is fixed. Using the following table, what is the firm's best short run output if it has no choice but to sell its product at the prevailing market price of $1.50?

• A) 200
• B) 500
• C) 700
• D) 800
• E) 900

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Definitions:

Automatic Processing

Mental activities that occur without conscious awareness or effort, such as habituated tasks or recognized patterns.

Effortful Processing

The active and conscious effort to encode or process information into memory, requiring attention and mental effort.

Encoding

The initial process of converting information into a form that can be stored in memory, involving various types of code such as visual, acoustic, or semantic.

Sensory Memory

The immediate, very brief recording of sensory information in the memory system.