If a Price Taker in a Competitive Market Is Going

question 182

Multiple Choice

If a price taker in a competitive market is going to maximize profits, he must

• A) increase the price of his product.
• B) minimize his fixed costs of production.
• C) minimize the per-unit cost of producing the good.
• D) use the highest valued set of resources to produce his product.

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Definitions:

Cognitive Dissonance

A psychological theory that suggests discomfort arises when a person holds conflicting beliefs, attitudes, or values, often leading to changes in one of the beliefs or behaviors.

Primacy Effect

The tendency to remember information at the beginning of a list better than the information that follows.

First Impression

the initial perception one person has of another upon meeting, which can significantly influence future perceptions and interactions.

Impression Formation

The forming of the first knowledge that a person has concerning another person.