Suppose Product Price Is Fixed at $24; MR = MC

question 374

Multiple Choice

Suppose product price is fixed at $24; MR = MC at Q = 200; AFC = $6; AVC = $25. What do you advise this firm to do?

• A) Increase output.
• B) Decrease output.
• C) Shut down operations.
• D) Stay at the current output; the firm is earning a profit of $1,400.
• E) Stay at the current output; the firm is losing $1,400.

---

Definitions:

Albert Ellis

A psychologist known for developing Rational Emotive Behavior Therapy (REBT), a form of cognitive-behavioral therapy focusing on changing irrational beliefs.

Term Paper

A research paper written by students over an academic term, accounting for a large part of a grade, and usually discussing a topic in detail.

Phobic Disorders

Mental health conditions characterized by excessive and irrational fear of specific objects, situations, or activities leading to avoidance behavior.

Type of Therapy

A specific approach or technique used to treat psychological disorders and to promote mental health.