The Speedy Typesetting Company, a Perfectly Competitive Firm, Is Currently

question 326

Multiple Choice

The Speedy Typesetting Company, a perfectly competitive firm, is currently producing where P = MC and is earning a normal profit. The yearly licensing fee that this firm must pay for the use of a statistical software program was just increased from $1,000 to $1,200. In the short run, this firm will most likely

• A) reduce the amount of output it produces because its cost curves have shifted up and to the left.
• B) continue to produce the same amount of output because only its fixed costs have increased.
• C) produce more units of output to increase revenue to cover the additional fixed costs.
• D) shut down because it will no longer be earning a normal profit.

---

Definitions:

Genetic Predisposition

The increased likelihood of developing a particular disease based on a person's genetic makeup.

Depression

A mental health disorder characterized by persistently low mood, loss of interest in activities, and a range of physical and cognitive symptoms.

Comorbidity

The simultaneous presence of two or more diseases or medical conditions in a patient.

Disorders

Conditions characterized by significant disturbances in behaviors, thoughts, or emotions.