A Monopolistic Competitor Is Producing a Level of Output at Which

question 3

Multiple Choice

A monopolistic competitor is producing a level of output at which price is $200,marginal revenue is $100,average total cost is $210,marginal cost is $100,and average variable cost is $180.In order to maximize profit,the firm should

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

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Definitions:

Tax Burden

The total amount of taxes that individuals, businesses, or other entities are obligated to pay, often expressed as a percentage of income or GDP.

Consumers

Individuals or organizations that use economic goods and services.

Keynes-Hayek

Refers to the economic theories and public debate between John Maynard Keynes and Friedrich Hayek, two prominent economists with differing views on government intervention in the economy.

Government Intervention

The act by which a government takes actions to affect or influence the economy, markets, or individual activities, often to correct market failures or achieve a more equitable distribution of resources.