If at an Output of 4,000 Units, Sloan Company Is

question 51

Multiple Choice

If at an output of 4,000 units, Sloan Company is making an economic profit and marginal profit is $20 per unit, the firm should

• A)reduce output to maximize total profit.
• B)increase output until marginal profit falls to zero.
• C)do whatever is necessary to increase marginal profit.
• D)There is not enough information to make a decision.

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Definitions:

Welfare Banks

Financial institutions or programs that aim to support the economically disadvantaged segments of society, though it's not a widely used term and may refer to various initiatives in different contexts.

Check-Cashing Outlets

Financial service providers that offer clients the ability to cash checks for a fee without needing a bank account.

Pay a Fee

The act of making a payment for a service or the right to engage in a particular activity, typically set at a fixed rate by the service provider or regulating authority.

Fractional Reserve

A banking system in which banks hold reserves that are less than the amount of their customers' deposits, allowing them to lend out the majority of deposited funds.