Refer to the Diagram

question 339

Multiple Choice

Refer to the diagram. If a firm produces output Q ₁ at a unit cost of b, then the

• A)firm is not fulfilling the least-cost rule in employing resources.
• B)firm may or may not be maximizing profits.
• C)marginal product per dollars' worth of each resource employed is not the same.
• D)firm has achieved minimum efficient scale.

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Definitions:

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or segments.

Marginal Revenue

The additional revenue that a company earns from selling one more unit of a product.

Monopolistic Competitor

A market structure where many companies sell products that are similar but not identical, allowing for some degree of market power.

Short Run

The length of time it takes all fixed costs to become variable costs.