Scenario 14-1 Assume a Certain Firm in a Competitive Market Is Producing

question 62

Multiple Choice

Scenario 14-1
Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.
-Refer to Scenario 14-1. To maximize its profit, the firm should

• A)increase its output.
• B)continue to produce 1,000 units.
• C)decrease its output but continue to produce.
• D)shut down.

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally triggers a response without the need for prior learning.

Conditioned Response

A learned reaction to a previously neutral stimulus, achieved through repeated association with an unconditioned stimulus.

Unconditioned Response

A spontaneous, innate response to any stimulus, happening without previously acquired knowledge or conditioning.

Taste Aversions

A learned response to eating spoiled or toxic food, where the mere sight or smell of the food can cause nausea or aversion.