Consider a Perfectly Competitive Firm in the Following Position: Output

question 33

Multiple Choice

Consider a perfectly competitive firm in the following position: output = 4000 units,market price = $1,fixed costs = $2000,variable costs = $1000,and marginal cost = $1.10.To maximize profits the firm should

• A)reduce its output.
• B)expand its output.
• C)produce zero output.
• D)increase the market price.
• E)not change its output.

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Definitions:

N = 20

Denotes a sample size of 20 in statistical terms, referring to the number of subjects or units in a study or experiment.

Creative Benefits

Non-traditional compensation or perks offered by employers, often designed to accommodate personal needs and preferences of employees.

Competitive Edge

An advantage that allows an organization to outperform its rivals.

Talented Employees

Individuals who possess a high level of skill, creativity, or intelligence, making them particularly valuable to their employers.