A Purely Competitive Firm Is Producing at the Point Where

question 71

Multiple Choice

A purely competitive firm is producing at the point where its marginal cost equals the price of its product.If the firm increases its output, then total revenue will

• A)increase and profits will increase.
• B)decrease and profits will increase.
• C)increase and profits will decrease.
• D)decrease and profits will decrease.

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Definitions:

Tethered

To be tied or anchored to a particular point or place, restricting freedom of movement.

Learned Association

A psychological principle where an individual connects two stimuli or a stimulus and a behavior through repeated exposure.

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, from birth to about 2 years of age, where infants learn about the world through their sensory impressions and motor activities.

Concrete Operational

A stage in Jean Piaget's theory of cognitive development during which children (ages 7-12 approximately) gain a better understanding of mental operations, leading to more logical thoughts about concrete events.