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.

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Definitions:

Ego Analysis

A psychoanalytic technique focusing on the functions of the ego in dealing with reality, defense mechanisms, and personal identity.

Aversion Therapy

A psychological treatment method that involves pairing a harmful stimulus with an undesirable behavior to reduce the behavior.

Time Limited Dynamic Psychotherapy

A form of psychotherapy that focuses on individual psychological processes and stresses the importance of interpersonal relationships, with therapy occurring within a set timeframe.

Behaviour Therapy

A treatment that emphasizes that problem behaviours are learned behaviours and that faulty learning can be reversed through the application of learning principles.