Suppose ABC Corp

question 19

Multiple Choice

Suppose ABC Corp.is a firm producing newsprint in a perfectly competitive industry.We have the following information about the firm's production: - output (Q) = 1500 tonnes per month
- average total cost (ATC) = $627 per tonne
- average variable cost (AVC) = $614 per tonne
- marginal revenue (MR) = $620 per tonne
- marginal cost (MC) = $620 per tonne In the short run,this firm should

• A)maintain production at the current level.
• B)shut down because the firm is incurring economic losses.
• C)increase output because MR is greater than AVC.
• D)reduce output because the price per tonne is less than ATC.
• E)Not possible to determine because the price of the product is not known.

Comprehend the concept of market structures and their types (pure competition, monopolistic competition, oligopoly, monopoly).

Recognize the role and effects of government policies on economic activities (fiscal policies, monetary policies, unemployment, and inflation).

Identify the causes and types of unemployment and their impacts on the economy.

Understand the causes, types, and effects of inflation.

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Definitions:

Reflexes

Involuntary and nearly instantaneous movements in response to a stimulus.

Gross Motor Skills

The abilities required to control the large muscles of the body for walking, jumping, balancing, and other physical activities.

Hippocampus

A region of the brain that is associated with memory formation, learning, and spatial navigation.

Myelination

The biological process of forming a myelin sheath around the axons of neurons, which significantly increases the speed at which electrical impulses travel across the nerve cells.