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

question 186

Multiple Choice

Refer to the data provided in Table 9.2 below to answer the question(s) that follow.
Table 9.2 $$\begin{array} { l l l l l l l } \text { q } & \text { TFC } & \text { TVC } & \text { TC } & \text { MC } & \text { AVC } & \text { ATC } \\\hline 0 & \$ 50 & \$ 0 & \$ 50 & - - & - - & - - \\1 & 50 & 20 & 70 & 20 & 20 & 70 \\2 & 50 & 30 & 80 & 10 & 15 & 40 \\3 & 50 & 45 & 95 & 15 & 15 & 31.67 \\4 & 50 & 62 & 112 & 17 & 15.50 & 28 \\5 & 50 & 90 & 140 & 28 & 18 & 28 \\6 & 50 & 132 & 182 & 42 & 22 & 30.33 \\7 & 50 & 186 & 236 & 54 & 26.57 & 33.71 \\\hline\end{array}$$
-Refer to Table 9.2. The market price is $42 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 $17 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:

Cognitive Theory

A theory of psychology that emphasizes internal states, such as knowledge, thought processes, and mental imagery, as key elements in understanding behavior.

Modeling

A method used in learning that involves observing and imitating others' behaviors.

Critical Periods

denote specific times during an organism's life when it is particularly susceptible to certain stimuli or experiences, which can have a significant impact on future development.

Multi-Directional Nature

The concept that development or change can occur in many different directions and is not linear.