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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Definitions:

Conviction

A firmly held belief or opinion, often referenced in sales as the degree of belief a salesperson has in the value of their product or service.

FAB Step

stands for Features, Advantages, and Benefits, a technique used in sales and marketing to effectively communicate the value of a product to potential customers.

SELL Sequence

An acronym or model outlining a systematic approach to selling that typically includes steps like Show features, Explain benefits, Lead into advantages, and Let customers speak.

Business Proposition

An offer or plan presented to a person or group with details about benefits and costs, aiming to persuade or inform the receiver towards making a business decision.