If a Profit-Seeking Competitive Firm Is Producing Its Profit-Maximizing Output

question 302

Multiple Choice

If a profit-seeking competitive firm is producing its profit-maximizing output and its total fixed costs fall by 25 percent, the firm should

• A)use more labor and less capital to produce a larger output.
• B)not change its output.
• C)reduce its output.
• D)increase its output.

---

Definitions:

Inferiority Feelings

Emotions of inadequacy or insignificance stemming from a real or imagined comparison to others.

Motivating Force

The innate or developed factors that stimulate and direct behavior towards achieving personal or collective goals.

First-born Children

Individuals born first in their familial hierarchy, often discussed in psychological research for their tendencies and qualities distinct from their siblings.

Center of Attention

A status or situation in which an individual, object, or topic is the main focus of others' interest or activity.