Consider a Perfectly Competitive Firm in the Following Position: Output

question 35

Multiple Choice

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

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

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Definitions:

CPU

CPU stands for Central Processing Unit, which is the primary component of a computer that performs most of the processing inside a computer.

Randomly Turns Off

Describes a device or system that shuts down without input or apparent pattern, often indicating a malfunction or instability.

Seated Properly

Refers to the correct installation of hardware components in their designated slots or connections ensuring they function as intended.

Thermal Printing

A printing method that produces an image by selectively heating thermal paper when the paper passes over the print head.