A Perfectly Competitive Firm Facing a Price of $10 Decides

question 61

Multiple Choice

A perfectly competitive firm facing a price of $10 decides to produce 100 units. If its marginal cost of producing the last unit is $12 and it is seeking to maximize profit, the firm should:

• A) produce more units.
• B) produce fewer units.
• C) continue producing 100 units.
• D) shut down.

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Definitions:

Careful

Being careful involves acting with thought and caution to avoid harm or mistakes.

Selective Perception

The method through which people filter media messages to align with their preferences, while disregarding any contradictory perspectives.

Systematic Attempt

A planned or organized effort to achieve a specific goal, often involving a methodical process.

Attribute

A quality or characteristic inherent to or ascribed to someone or something.