If the Market Price Is $3 and a Perfectly Competitive

question 61

Multiple Choice

If the market price is $3 and a perfectly competitive firm is producing 2,200 units and the marginal cost to produce the 2,200th unit is $2.85, which of the following is true?

• A)The firm is maximizing profit.
• B)The difference between marginal revenue and marginal cost (MR - MC)for the 2,200th unit is negative.
• C)The firm should decrease production to maximize profit.
• D)The firm should increase production to maximize profit.

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Definitions:

Long-term Potentiation

An increase in synaptic strength following high-frequency stimulation of a chemical synapse.

Resilience

The capacity to recover quickly from difficulties; toughness, or the ability to bounce back from adverse experiences.

Psychological Techniques

Methods or strategies used in psychology to understand, diagnose, and treat mental health issues or to study behavior and mental processes.

Psychotherapy

A treatment method for mental health conditions that involves talking with a mental health professional to understand and resolve problematic behaviors, beliefs, feelings, and relationship issues.