Consider the Total Cost and Revenue Curves Shown Below,for Two

question 142

Multiple Choice

Consider the total cost and revenue curves shown below,for two perfectly competitive firms,Firm A and Firm B. FIGURE 9-4
-Refer to Figure 9-4.Given its total cost and revenue curves,Firm B should

• A)exit the industry.
• B)shut down temporarily.
• C)maximize its profits by producing that level of output such that the slope of the TC curve is equal to the slope of the TR curve.
• D)maximize its profits by producing that level of output such that the slope of the TVC curve is equal to the slope of the TR curve.
• E)produce the level of output where the TC curve intersects the TR curve.

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Definitions:

Union Membership

Refers to the state of being a member of a labor union, which is an organization that represents the collective interests of workers in negotiations with employers over wages, working conditions, and benefits.

Right-to-Work Laws

Legislation that secures the right of employees to decide whether or not to join or support a union.

Taft-Hartley Act

A U.S. federal law enacted in 1947 that restricts the activities and power of labor unions.

Sherman Antitrust Act

A landmark federal statute passed in the United States in 1890 aimed at preserving free competition by prohibiting monopolistic business practices.