At Its Current Level of Quantity, a Perfectly Competitive Firm's

question 41

Multiple Choice

At its current level of quantity, a perfectly competitive firm's marginal revenue is $3.25, its short- run marginal cost is $3.25 and its long- run marginal cost is $3.00. Which of the following statements is true?

• A)The firm should increase its production to maximize profit in the short- run.
• B)The firm is maximizing its long- run profit, but not its short- run profit.
• C)The firm should decrease its production to maximize profit in the short- run.
• D)The firm is maximizing its short- run profit, but not its long- run profit.

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Definitions:

Obsessive-Compulsive Disorder

A mental health disorder characterized by persistent, unwanted thoughts (obsessions) and repetitive behaviors (compulsions).

Body Dysmorphic Disorder

A mental disorder characterized by obsessive focus on a perceived flaw in physical appearance that is either minor or not observable to others.

Hoarding Disorder

A psychiatric disorder characterized by a persistent difficulty discarding or parting with possessions, regardless of their actual value.

Posttraumatic Stress Disorder

A psychiatric disorder that may occur in people who have experienced or witnessed a traumatic event, characterized by severe ongoing emotional distress.