A Competitive Firm Has Been Selling Its Output for $20

question 367

Multiple Choice

A competitive firm has been selling its output for $20 per unit and has been maximizing its profit, which is positive. Then, the price rises to $25, and the firm makes whatever adjustments are necessary to maximize its profit at the now-higher price. Once the firm has adjusted, its

• A)quantity of output is higher than it was previously.
• B)average total cost is higher than it was previously.
• C)marginal revenue is higher than it was previously.
• D)All of the above are correct.

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Definitions:

Checked Exception

In Java, a type of exception that is checked at compile-time for a smooth execution of the program and must be either caught or declared in the method's throws clause.

Class Object

In object-oriented programming, a class object is an instance of a class, where the class provides a blueprint or template that defines the properties and behaviors of the objects.

Class Throwable

A superclass in Java for all errors and exceptions that can occur during the execution of a program.

Try Block

A block of code that is attempted to be executed in programming, with potential errors caught by a catch block.