Consider a Perfectly Competitive Firm in the Following Position: Output

question 70

Multiple Choice

Consider a perfectly competitive firm in the following position: output = 4000 units, market price =
$1, fixed costs = $2000, variable costs = $1000, and marginal cost = $1.10. To maximize profits the firm should

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

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Definitions:

Interview

A formal conversation between two or more people, where questions are asked to obtain information from the interviewee.

Terminate

To terminate means to bring something to an end or to conclude.

Advance Career

Actions or steps taken to progress professionally in one's job or occupation, aiming for higher positions, increased responsibility, or specialized knowledge.

Employed

Employed refers to an individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties.