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.

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Definitions:

Narrow Behavior Categories

Refers to highly specific classifications of actions or responses that are considered in psychological studies or organizational assessments.

Empowering Decision Procedure

A process that allows individuals or groups to have more control and influence over decisions that affect them, often encouraging participation and responsibility.

Consultation

Consultation involves seeking advice, opinions, or feedback from others to inform decision-making or improve processes.

Joint Decisions

The process of making choices or resolutions through collaboration among multiple parties or stakeholders.