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

question 383

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 $625 per robot. It follows that producing one more robot will cause this firm's

• A) total cost to decrease.
• B) profits to increase.
• C) profits to decrease.
• D) profits to remain unchanged.

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Definitions:

Maslow

A psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Fictional Finalism

A concept introduced by Alfred Adler, suggesting that individuals are motivated more by their expectations of the future than by past experiences.

Social Inequality

A condition in which members of society have differing amounts of wealth, prestige, or power.

Strive

To make great efforts to achieve or obtain a particular goal, often in the face of difficulties.