A Local Business Sells Its Product for $40 Each in a Competitive

question 195

Multiple Choice

A local business sells its product for $40 each in a competitive price-taker market. At its present rate of output, its marginal cost is $40, average variable cost is $45, and average total cost is $60. The business should

• A) increase output
• B) reduce output but not to zero
• C) maintain the present rate of output
• D) shut down
• E) raise the price

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Definitions:

Willfully Violates

The act of intentionally breaking a law or regulation.

Securities Act Of 1933

The first major federal legislation to regulate the offer and sale of securities. Prior to this act, regulation of securities was chiefly governed by state laws, commonly referred to as blue sky laws. When Congress enacted this act, it left existing state securities laws (“blue sky laws”) in place.

Securities Regulation

A field of law that governs the issuance, trading, and enforcement of financial instruments like stocks and bonds, ensuring transparency, fairness, and protection for investors.

Disclose

means to reveal or make known information that was previously private or secret.