If Dell Computer Finds That Its Marginal Cost Exceeds Its

question 142

Multiple Choice

If Dell Computer finds that its marginal cost exceeds its marginal revenue on a model of laptop, then to maximize profit, it will

• A) increase output if it is a price searcher, but this may not be proper if it is a price taker.
• B) increase output if it is a price taker, but this may not be proper if it is a price searcher.
• C) decrease output, regardless of whether it is a price taker or a price searcher.
• D) increase output, regardless of whether it is a price taker or a price searcher.

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Definitions:

Informational Social Influence

"The influence other people have on us because we want to be right."

Principle Of Proximity

A principle in psychology that suggests objects or shapes that are close to one another appear to form groups.

Observational Learning

Learning that occurs through observing and imitating another’s behavior.

Frustration-Aggression Theory

A psychological theory suggesting that the occurrence of aggressive behavior arises from frustration, which is the result of blocked goals or achievement.