Table 14-9
a Firm in a Competitive Market Has the Following

question 42

Multiple Choice

Table 14-9
A firm in a competitive market has the following cost structure:
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$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { (Units) }\end{array} & \begin{array} { c } \text { Marginal Cost } \\\text { (Dollars) }\end{array} \\\hline 0 & - \cdot \\\hline 1 & 5 \\\hline 2 & 10 \\\hline 3 & 15 \\\hline 4 & 20 \\\hline 5 & 25 \\\hline\end{array}$$ ​
-Refer to Table 14-9. Consider a competitive market with 50 identical firms. Suppose the market demand is given by the equation Q^D = 200 ? 10P and the market supply is given by the equation Q^S = 10P. How many units should a firm in this market produce to maximize profit?

• A)1 unit
• B)2 units
• C)3 units
• D)4 units

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Definitions:

Defense Mechanism

Psychological strategies employed unconsciously to protect a person from anxiety-arising thoughts or feelings.

Unacceptable Impulses

Thoughts or desires that are often viewed as inappropriate or socially unacceptable, which can cause distress if not managed.

Displacement

In psychology, a defense mechanism where mind substitutes a new aim or object for goals felt in their original form to be dangerous or unacceptable.

Psychosexual Development

Psychosexual development is a Freudian concept describing how personality develops through stages centered on erogenous zones from infancy to adulthood.