-The Table Above Gives the Total Revenue and Total Cost

question 3

Multiple Choice

-The table above gives the total revenue and total cost for a perfectly competitive firm producing chocolate chip cookies. If the firm is producing 1 pound of cookies, to maximize its profit it will

• A) increase its output.
• B) decrease its output.
• C) continue producing 1 pound of cookies.
• D) shut down.

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Definitions:

Money Income

The total amount of monetary earnings received by an individual or household, including wages, salaries, benefits, and income from investments.

Price Increase

A rise in the cost of goods or services, which can be influenced by factors such as inflation, demand, or production costs.

Indifference Curve

A graph representing combinations of two goods that give a consumer equal satisfaction and utility.

Total Utility

Total utility is the total satisfaction or benefit a consumer receives from consuming a given total quantity of a good or service.