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:

Formal Discipline

A structured approach to teaching or enforcing rules and expectations, often used in educational or military settings.

Psychology

The scientific study of the mind and behavior, encompassing various fields such as cognitive, social, and developmental psychology.

1800s

The 19th century, a period marked by significant industrial, cultural, and political changes worldwide.

Wilhelm Wundt

Often considered the father of modern psychology, he established the first psychology laboratory at the University of Leipzig in 1879.