A Firm with Market Power Is Producing a Level of Output

question 5

Multiple Choice

A firm with market power is producing a level of output at which price is $8,marginal revenue is $5,average variable cost is $6,and marginal cost is $10.In order to maximize profit,the firm should

• A)decrease price.
• B)increase price.
• C)keep price the same.
• D)increase output.
• E)shut down.

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Definitions:

Intersex Infants

Babies born with reproductive or sexual anatomy that doesn't fit typical definitions of male or female.

Genitalia

The external and internal sex organs that are involved in sexual reproduction and function.

Unambiguous

Something that is clear and precise, leaving no room for doubt or confusion.

Optimal Gender

The most favorable or desirable expression or identity of gender for an individual, where they feel most comfortable and true to themselves.