A Profit-Maximizing fiRm Is Producing an Output of 300 Units

question 14

Multiple Choice

A profit-maximizing firm is producing an output of 300 units where price is £10 per unit and average total cost is £8 per unit. Given that the firm operates in a perfectly competitive market, which of the following is likely to be true?

• A) The firm will stop production and exit the market.
• B) The firm will sell each unit of the product at a higher price.
• C) The market supply curve will shift to the right.
• D) The existing firms will exit the industry.

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Definitions:

Fine Motor Skills

The small muscle movements of the hands, fingers, and other parts of the body that enable tasks such as writing, typing, and tying shoelaces.

Preference Increase

The process by which an individual's favor or liking for a particular stimulus or choice becomes more pronounced over time.

Sweet And Salty

A taste preference often referring to the enjoyment of foods or snacks that combine sugary and savory flavors.

Parents' Dislikes

The specific aversions or negative feelings that parents have towards certain behaviors, actions, or preferences.