A Competitive Price-Searcher Firm Is Currently Producing 10 Units of Output

question 104

Multiple Choice

A competitive price-searcher firm is currently producing 10 units of output. At this level of output the firm is charging a price equal to $10, has marginal revenue equal to $6, has marginal cost equal to $6, and has average total cost equal to $12. From this information we can conclude that

• A) the firm is currently maximizing its profit.
• B) the profits of the firm are positive.
• C) firms are likely to enter this market in the long run.
• D) the firm would earn more profit by expanding output

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Definitions:

Epistasis

Polygenic inheritance, in which a trait is influenced by multiple genes.

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A breed of dog known for its friendly nature, intelligence, and versatility in various roles such as assistance dogs and in search-and-rescue operations.

Alleles

Alternative forms of a gene that occur at the same locus on homologous chromosomes, contributing to genetic diversity.

Inherited

Traits or genetic information that are transmitted from parents to their offspring through their genes.