Consider a Perfectly Competitive Firm in the Following Position: Output

question 35

Multiple Choice

Consider a perfectly competitive firm in the following position: output = 4000 units, market price =
$1, fixed costs = $2000, variable costs = $2000, and marginal cost = $1. To maximize profits the firm should

• A) shut down.
• B) not change its output.
• C) expand its output.
• D) increase the market price.
• E) reduce its output.

---

Definitions:

Neuropsychological Test

A test that detects brain impairment by measuring a person’s cognitive, perceptual, and motor performances.

Projective Test

A personality assessment tool that prompts an individual to react to vague stimuli, uncovering concealed feelings and underlying struggles.

MMPI-2

A widely used standardized psychometric test of adult personality and psychopathology.

Draw-A-Person

A projective psychological test where individuals are asked to draw a person, used to assess aspects of a person’s personality, intelligence, or emotional state.