The Data Below Are for a Competitive Business (Price-Taker) A)shut Down (Produce Nothing)

question 85

Multiple Choice

The data below are for a competitive business (price-taker) .If the market price is $800 per unit,the company should $\begin{array}{rrrrr}&\text { Average } & \text { Average } & \text { Average }\\\text { Output}& \text {Fixed Costs}& \text {Variable Costs}& \text {Total Costs} &\text {Marginal Cost }\\\hline0&\$ 3,000\\1 & \$ 3,000 & \$ 900 & \$ 3,900 & \$ 900 \\2 & \$ 1,500 & \$ 800 & \$ 2,300 & \$ 700 \\3 & \$ 1,000 & \$ 700 & \$ 1,700 & \$ 500 \\4 & \$ 750 & \$ 600 & \$ 1,350 & \$ 300 \\5 & \$ 600 & \$ 500 & \$ 1,100 & \$ 100 \\6 & \$ 500 & \$ 550 & \$ 1,050 & \$ 800 \\7 & \$ 429 & \$ 600 & \$ 1,029 & \$ 900 \\8 & \$ 375 & \$ 650 & \$ 1,025 & \$ 1,000 \\9 & \$ 333 & \$ 700 & \$ 1,033 & \$ 1,100 \\10 & \$ 300 & \$ 750 & \$ 1,050 & \$ 1,200\end{array}$

• A)shut down (produce nothing).
• B)produce four units.
• C)produce six units.
• D)produces as much as possible.

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Definitions:

Relatively Rare

An occurrence or condition that happens infrequently in comparison to other similar events or conditions.

Virtually Nonexistent

A term used to describe something that has such a minimal presence or is so rare that it is almost or completely absent.

Rising Steadily

A consistent and ongoing upward movement or trend in a particular variable, such as temperature, prices, or economic growth.

Most Common

Referring to the most frequently occurring or prevalent in a certain context or category.