A fiRm Is Producing an Output of 500 Units

question 46

Multiple Choice

A firm is producing an output of 500 units. The revenue from an additional unit sold is £6, while the marginal cost of producing each unit is £5. In order to maximize profits, the firm should:

• A) reduce the number of units produced.
• B) continue to produce the same number of units.
• C) increase output beyond 500 units.
• D) reduce its variable costs.

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Definitions:

Sedimentary Rock

A type of rock formed by the accumulation and consolidation of mineral and organic particles, precipitated from solution, or deposited as insoluble residue.

Biogeography

The study of the distribution of species and ecosystems in geographic space and through geological time, influenced by environmental factors and ecological processes.

Morphological Patterns

The study of the structure, form, and shape of organisms and their specific structural features.

Comparative Geography

The study of the various characteristics of different places on Earth, focusing on similarities and differences.