Assume Robbie's Robots Operates in a Perfectly Competitive Market Producing

question 95

Multiple Choice

Assume Robbie's Robots operates in a perfectly competitive market producing 3,000 robots per day. At this output level, the selling price is $800 per robot and the marginal cost is $825 per robot. To maximize profits, Robbie's Robots should

• A) make no adjustments as they are already maximizing their profits.
• B) increase their output.
• C) decrease their output.
• D) stop producing since it is earning a loss.

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Definitions:

Moral Principles

Fundamental beliefs about right and wrong that guide individuals' behaviors and decision-making in personal and professional contexts.

Enforceable

Capable of being implemented or upheld by legal means.

Tobacco-Producing

The agricultural cultivation and processing of tobacco plants for the production of tobacco products.

Free Trade

An economic policy that allows imports and exports among member countries with little or no tariff barriers, quotas, or prohibitions.