Scenario 14-3 Suppose a Certain Competitive Firm Is Producing Q=500 Units of Units

question 9

Multiple Choice

Scenario 14-3
Suppose a certain competitive firm is producing Q=500 units of output. The marginal cost of the 500th unit is $17, and the average total cost of producing 500 units is $12. The firm sells its output for $20.
-Refer to Scenario 14-3. If the marginal cost of producing the 501st unit would be $19, producing and selling the 501st unit would

• A)decrease the firm's profit by $19.
• B)decrease the firm's profit by $2.
• C)increase the firm's profit by $1.
• D)increase the firm's profit by $3.

---

Definitions:

Needed

Refers to something essential or required in a particular situation or for achieving a specific outcome.

Somatization Symptoms

Physical symptoms that have no apparent medical cause but are believed to be manifestations of psychological distress or disorders.

International Studies

An interdisciplinary field that examines social, economic, and political issues from a global perspective, focusing on the relations and interactions among countries.

Autonomic Nervous System

A part of the nervous system that controls involuntary functions of the body, such as heart rate, digestion, and respiratory rate.