A Firm Is Currently Operating Where the MC of the Last

question 402

Multiple Choice

A firm is currently operating where the MC of the last unit produced is $64, and the MR of this unit is $70. Which of the following would increase profit?

• A) Shut down.
• B) Increase output.
• C) Stay at current output.
• D) Decrease output.
• E) Decrease price.

---

Definitions:

Just World Hypothesis

The belief that the world is fundamentally fair, leading people to rationalize an undeserved, bad outcome as deserved.

Moral Foundation Theory

A social psychological theory that describes the origins of human moral reasoning on the basis of innate, modular foundations.

Moral Decisions

Decisions that involve the judgment of right or wrong, often based on a set of societal or personal ethical principles.

Respecting Authority

The act of acknowledging and adhering to the rules, directives, and positions of those in power or leadership.