Assume a Certain Competitive Price-Taker Firm Is Producing Q =

question 201

Multiple Choice

Assume a certain competitive price-taker firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit. To maximize its profit, the firm should

• A) increase its output.
• B) continue to produce 1,000 units.
• C) decrease its output, but continue to produce.
• D) shut down.

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An instrument that measures and records several physiological indicators such as blood pressure, pulse, respiration, and skin conductivity while a subject is asked questions, purported to indicate lying or truthfulness.

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