A Firm Is Producing 10,000 Units of Output

question 107

Multiple Choice

A firm is producing 10,000 units of output.Price at this output level is $16.00 for each unit,and marginal revenue is $13.00.Average per unit cost is $12.00,and marginal cost is $12.50.From this information,we can conclude that the business

• A)enjoys economies of scale.
• B)is maximizing profit at this level.
• C)should produce less.
• D)should produce more.

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Definitions:

Savonarola

Girolamo Savonarola was a Dominican friar and preacher in Renaissance Florence who is known for his prophecies of civic glory, the destruction of secular art and culture, and his call for Christian renewal.

Camera Degli Sposi

A room in the Ducal Palace of Mantua, Italy, celebrated for its frescoes by Andrea Mantegna that include trompe l'oeil effects and courtly scenes.

Mantegna

Italian Renaissance artist Andrea Mantegna, celebrated for his mastery in perspective and detailed frescoes that vividly depict historical and religious scenes.

Linear Perspective

A technique in art, specifically drawing and painting, that creates the illusion of depth and volume on a flat surface by depicting objects smaller as their distance from the observer increases.