A Certain Competitive Firm Sells Its Output for $20 Per

question 550

Multiple Choice

A certain competitive firm sells its output for $20 per unit. The 50th unit of output that the firm produces has a marginal cost of $22. Production of the 50th unit of output does not necessarily

• A)increase the firm's total revenue by $20.
• B)increase the firm's total cost by $22.
• C)decrease the firm's profit by $2.
• D)increase the firm's average variable cost by $0.44.

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Definitions:

Nominal

Relating to names or categories that are only labeled and do not have an inherent order or rank.

Ordinal

Relating to a classification where order or position is significant but not the magnitude of difference between items.

Predictive Statistics

Predictive statistics involves using historical data to make predictions about future events, often employing models and algorithms to forecast trends and outcomes.

Historical Data

Information or records relating to past events, conditions, or performances, used for analysis, comparison, or forecasting.