The Table Shows the Total Costs for a Purely Competitive

question 18

Multiple Choice

The table shows the total costs for a purely competitive firm. If the product sells for $600 a unit, the firm's short run profit-maximizing (or loss-minimizing) output is

• A)3.
• B)0.
• C)1.
• D)4.

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Definitions:

Alternatives

Different options or choices available in a decision-making scenario.

Relevant Cost

A cost that differs between alternatives in a decision. This term is synonymous with avoidable cost and differential cost.

Direct Materials

The raw materials that are directly traceable to the manufacturing of a product.

Direct Labour

The workforce directly involved in producing goods or delivering services, whose costs are directly attributable to the products or services.