If a Profit-Maximizing Firm in a Competitive Market Discovers That

question 243

Multiple Choice

If a profit-maximizing firm in a competitive market discovers that, at its current level of production, price is greater than marginal cost, it should

• A)shut down.
• B)reduce its output but continue operating.
• C)continue to produce at the current levels.
• D)increase its output.

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Definitions:

Manumitted

The act of a slave owner freeing their slaves.

New Netherland

A 17th-century colonial province of the Seven United Netherlands that was located on the East Coast of North America.

Bacon's Rebellion

An armed rebellion held in 1676 by Virginia settlers led by Nathaniel Bacon against the rule of Governor William Berkeley, partly due to discontent with how Native American relations were handled.

Birth Rates

The number of live births per thousand of population per year.