If a Perfectly Competitive Firm Is Producing at Its Profit-Maximizing

question 62

Multiple Choice

If a perfectly competitive firm is producing at its profit-maximizing output in the short run and fixed costs decline,the firm should

• A)Use less capital but increase output by hiring more labor.
• B)Not change output.
• C)Reduce output.

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Definitions:

Lewis Dot Structure

An illustration depicting the connections between a molecule's atoms and displaying the presence of electrons that are not bonded, if any.

Calcium

A metallic chemical element essential for living organisms, particularly in cell physiology and bone formation.

Chlorine

Chlorine is a chemical element with symbol Cl and atomic number 17, known for its powerful disinfectant properties and use in water purification.

Lewis Dot Structure

A diagram that represents the valence electrons of an atom as dots around the elements' symbols and indicates the bonding between atoms in a molecule.