A Certain Competitive Firm Sells Its Output for $20 Per

question 550

Multiple Choice

A certain competitive firm sells its output for $20 per unit. The 50th unit of output that the firm produces has a marginal cost of $22. Production of the 50th unit of output does not necessarily

• A)increase the firm's total revenue by $20.
• B)increase the firm's total cost by $22.
• C)decrease the firm's profit by $2.
• D)increase the firm's average variable cost by $0.44.

---

Definitions:

Postformal Thought

A stage of cognitive development proposed to follow Piaget's formal operational stage, characterized by the recognition that truth may vary from situation to situation and the increased use of logic to solve complex problems.

Relativistic Terms

Concepts or terms understood variably within the context of differing perspectives, acknowledging that there are multiple views of reality.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, a concept developed during infancy.