If a Firm Is a Price Taker and Wants to Earn

question 214

Multiple Choice

If a firm is a price taker and wants to earn as much profit as possible, it should expand output

• A) to the quantity at which marginal cost is minimized.
• B) as long as marginal cost is less than price.
• C) to the quantity at which average total costs are minimized.
• D) to try to sell all the output it can produce so that its average fixed costs will be minimized.

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Definitions:

Doctor's Office

A medical facility where doctors diagnose and treat illnesses, offer health consultations, and provide preventive care.

Heterogeneous

Comprised of varying elements or components that differ from one another; varied in nature or substance.

Service-Product Continuum

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A grocery store is a retail establishment that specializes in selling food and other household goods to consumers for everyday consumption.