Tammy Sells Woollen Hats in a Perfectly Competitive Market

question 12

Multiple Choice

Tammy sells woollen hats in a perfectly competitive market. The marginal cost of producing one hat is $24. The marginal cost of producing a second hat is $26 and the marginal cost of producing a third hat is $28. The market price of a hat is $26. To maximise profit, Tammy produces _______ per day.

• A) as many hats as possible
• B) 1 hat
• C) 3 hats
• D) 2 hats

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Definitions:

Manifest Content

In psychoanalytic theory, the apparent story, events, or imagery of a dream as remembered by the dreamer, distinguished from the hidden meaning or latent content.

Electra Complex

A psychoanalytic theory describing a girl's sense of competition with her mother for the affection of her father.

Defensive Content

Material within a psychological test aimed at eliciting responses that might reveal particular defense mechanisms or insecurities of the participant.

Genital Stage

When the child begins adult sexual development in puberty.