Consider a Perfectly Competitive Firm That Is Producing a Level

question 49

Multiple Choice

Consider a perfectly competitive firm that is producing a level of output such that price equals average total cost and average total cost is less than marginal cost.In order to maximize its profits,the firm should

• A)reduce output.
• B)expand output.
• C)shut down.
• D)increase the market price.
• E)not change output.

---

Definitions:

Sexual Harassment

Unwanted or inappropriate sexual remarks, advances, or behaviors, usually in a workplace or academic setting, that can create a hostile environment.

Ethical Issue

A dilemma or situation that requires a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).