Refer to the Data Provided in Table 9 -Refer to Table 9

question 119

Multiple Choice

Refer to the data provided in Table 9.4 below to answer the question(s) that follow.
Table 9.4
$$\begin{array} { c c c c c c c } \text { q } & \text { TFC } & \text { TVC } & \text { TC } & \text { MC } & \text { AVC } & \text { ATC } \\\hline 0 & \$ 100 & \$ 0 & \$ 100 & - - & - - & - - \\\hline 1 & 100 & 40 & 140 & 40 & 40 & 140 \\\hline 2 & 100 & 60 & 160 & 20 & 30 & 80 \\\hline 3 & 100 & 90 & 190 & 30 & 30 & 63.33 \\\hline 4 & 100 & 124 & 224 & 34 & 31 & 56 \\\hline 5 & 100 & 180 & 280 & 56 & 36 & 56 \\\hline 6 & 100 & 264 & 364 & 84 & 44 & 60.67 \\\hline 7 & 100 & 372 & 472 & 108 & & 67.42 \\\hline\end{array}$$
-Refer to Table 9.4. The market price is $84 and this firm is producing four units of output. Which of the following would you recommend to this firm?

• A) Continue producing four units of output, because the firm is able to make an economic profit.
• B) Increase output to six units, so that marginal cost equals marginal revenue.
• C) Reduce price to $34, so that marginal cost will equal marginal revenue at 4 units of output.
• D) Increase output to seven units so that price is less than marginal cost.

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Definitions:

Male Parental Care

The involvement of males in raising their offspring, including feeding, defense, and teaching, which is observed in various animal species.

Social Species

Species characterized by complex interactions within their communities, often involving cooperative living, communication, and social structures.

Solitary Nesters

Animals that prefer to build and inhabit nests alone rather than in communal or shared spaces.

Natal Nests

The nests or birthplaces from where individuals originate and often return to for reproduction.