A Firm in Competitive Price-Taker Market Is Maximizing Profit at Q

question 35

Multiple Choice

A firm in competitive price-taker market is maximizing profit at Q = 3,000. Then its fixed cost increases. The profit-maximizing output is now

• A) greater than 3,000 and profit decreases
• B) less than 3,000 and profit decreases
• C) greater than 3,000 and profit is unchanged
• D) equal to 3,000 and profit decreases
• E) equal to 3,000 and profit increases

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Definitions:

Dexterity

Skill and ease in using the hands or body; the coordination of fine or gross motor abilities.

Breast-Fed

Refers to infants who are fed breast milk, either directly from the breast or pumped, as opposed to being fed formula from a bottle.

Bottle-Fed

Referring to infants who receive nutrition from bottles rather than breastfeeding, involving formula or other substitutes.

Infants

Young children from birth to one year old, characterized by rapid physical and cognitive development.