The Table Shows a Total-Product Schedule for a Resource

question 38

Multiple Choice

The table shows a total-product schedule for a resource. Assume that the quantities of other resources the firm employs remain constant. If the firm can produce 24 units at a price of $1.00, 42 units at a price of $0.80, and 54 units at a price of $0.60, then the firm is

• A)selling in a purely competitive market.
• B)selling in an imperfectly competitive market.
• C)minimizing its costs at a product price of $1.00.
• D)maximizing profits at a product price of $0.60.

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Definitions:

Offer Accepted

The confirmation by one party to agree to the terms of an offer made by another party, leading to a contract.

Common Law

A legal system based on court decisions and customs, as opposed to statutory laws passed by legislatures.

Liability to Customers

The legal responsibility of a business to compensate customers for harm, loss, or injury resulting from its products or services.

Unfair Business Practices

Business practices designed to take advantage of consumer inexperience or ignorance.