Suppose ABC Corp

question 39

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

---

Definitions:

Gastrulation

An early embryonic process in which the single-layered blastula is reorganized into a multilayered structure known as the gastrula, forming the basic body plan.

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, giving rise to the outer layer of skin, nails, hair, and nervous system.

Epiblast

A layer of cells in the early embryo from which all the various tissues and organs of the body will eventually develop.

Neural Plate

An early embryonic structure that gives rise to the central nervous system, including the brain and spinal cord, through the process of neurulation.