Use the Figure to Answer the Following Question(s)

question 405

Multiple Choice

Use the figure to answer the following question(s) .
Figure 9-4

Figure 9-4 indicates the cost conditions for a firm operating in a price-taker market. If the market price of the firm's product is $6, what action will maximize the firm's profit?

• A) go out of business since it cannot make a profit
• B) produce an output of 3 million
• C) produce an output of 5 million
• D) produce an output of 6 million

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Definitions:

Comments

Observations or remarks expressed to convey feedback or information.

Informal Rule Making

The process whereby regulatory agencies create and issue rules and regulations through methods that are less formal than traditional rulemaking processes, often involving public notice and comment.

Efficiency

The economic principle of getting the most output from the least input.

Administrative System

A framework or process through which organizations manage tasks, procedures, and structures to achieve objectives efficiently and effectively.