Suppose ABC Corp

question 5

Multiple Choice

Suppose ABC Corp.is a firm producing newsprint in a perfectly competitive industry.Its output is 1500 tonnes per month,the marginal cost of the last tonne produced is $710,and the average revenue per tonne is $620.In the short run,this firm should

• A)reduce output.
• B)increase output until average revenue is equal to marginal cost.
• C)increase output until marginal revenue is equal to marginal cost.
• D)definitely shut down.
• E)The price of the product is not known,so it is not possible to determine.

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Definitions:

Corporate Social Responsibility

A corporate strategy that includes social and environmental considerations into the business's day-to-day operations and their engagement with stakeholders.

Cyclone Blenders

High-speed blending machines that use cyclonic action to pull ingredients towards the blades, ensuring a smooth and efficient blend.

Donates

The act of giving money, goods, or time to a cause, charity, or individual without expecting anything in return.

Conscious Marketing

Emphasizes ethical considerations and the well-being of stakeholders in the marketing process, aiming for sustainable and socially responsible practices.