If the Market Price Is $2

question 117

Multiple Choice

If the market price is $2.75 and a perfectly competitive firm is producing 1,100 units and the marginal cost to produce the 1,100th unit is $2.75, which of the following is true?

• A)The firm is not maximizing profit.
• B)The difference between marginal revenue and marginal cost (MR - MC)for the 500th unit is negative.
• C)The difference between marginal revenue and marginal cost (MR - MC)for the 500th unit is zero.
• D)The difference between marginal revenue and marginal cost (MR - MC)for the 500th unit is positive.

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Definitions:

Piagetian Stage

Stages of cognitive development proposed by Jean Piaget that describe how children's ability to think and reason evolves as they grow older.

Conservation

In cognitive psychology, Piaget's principle that children learn that quantity does not change with physical rearrangement or appearance of objects.

Classification

The systematic arrangement of entities in a structured form, usually based on common characteristics or attributes.

Preoperational Thought

Describes one of Piaget's stages of cognitive development, typically occurring from age 2 to 7, marked by symbolic thinking, egocentrism, and a lack of logical reasoning.