Figure 14-4 Suppose a Firm Operating in a Competitive Market Has the Has

question 561

Multiple Choice

Figure 14-4
Suppose a firm operating in a competitive market has the following cost curves:
-Refer to Figure 14-4. When price rises from P3 to P4, the firm finds that

• A)fixed costs decrease as output increases from Q3 to Q4.
• B)it can earn a positive profit by increasing production to Q4.
• C)profit is still maximized at a production level of Q3.
• D)average revenue exceeds marginal revenue at a production level of Q4.

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Definitions:

Basic Hardware

Fundamental physical components of a computer system, including the CPU, RAM, hard drives, motherboard, and power supply.

Cache Memory

Fast memory designed to increase processor operations.

Processor

The central 32-bit or 64-bit electronic chip that determines the processing power of a computer. Also known as a microprocessor or central processing unit (CPU).

L1

A term commonly used to refer to the first level of cache memory in a computer’s processor, which is directly accessible by the CPU and designed for fast data retrieval.