Refer to Figure 23

question 114

Multiple Choice

Refer to Figure 23.5 for a perfectly competitive firm. Which of the following is not true for this firm at a price of $200?

• A) The firm is using the fewest resources possible to produce each unit of output.
• B) The firm is practicing marginal cost pricing.
• C) The price is a reflection of the highest-valued good that could have been produced with the resources the firm used for the last unit it produced.
• D) The firm should leave this market in an effort to earn economic profits.

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Definitions:

Business Games

Interactive simulations or activities designed to teach management, business strategies, or decision-making skills in an educational or training context.

Median

The middle value in a data set when it is ordered from smallest to largest, or the mean of the two middle numbers when the set has an even number of observations.

Mathematical Average

Another term for mean, which is calculated by adding up all the numbers in a set of data and dividing by the count of numbers.

Mode

The datum that is most recurrent in a given data set.