If a Perfectly Competitive Firm Is Producing at the Output

question 87

Multiple Choice

If a perfectly competitive firm is producing at the output level where marginal revenue is equal to marginal cost and at this output level, the firm's average variable cost is $3 and the market price is $2, the firm______ .

• A)should increase production
• B)is earning a competitive return
• C)should shut- down
• D)should decrease production

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Definitions:

Mature Early

Refers to individuals who reach developmental milestones sooner than their peers.

Negative Outcomes

Unfavorable or adverse results that may arise from a decision, action, or situation, impacting well-being or progress.

Synaptic Pruning

The process by which extra neurons and synaptic connections are eliminated to increase the efficiency of neuronal transmissions.

Adolescence

A developmental stage between childhood and adulthood characterized by significant physical, psychological, and social changes.