If a Price Searcher Is Producing at a Level of Output

question 156

Multiple Choice

If a price searcher is producing at a level of output such that its marginal cost is $5 and its marginal revenue is $3, the firm should

• A) increase output in order to reduce per-unit costs.
• B) decrease the price of its product and expand output.
• C) increase price and reduce its rate of output.
• D) reduce both price and output.

---

Definitions:

George Ritzer

An American sociologist recognized for his work on consumerism, globalization, and the theory of McDonaldization of society.

Double Exploitative

A term describing situations or systems where individuals or groups are subjected to two overlapping forms of exploitation, often related to labor and resources.

Chemical Entrainment

The process by which a rhythmic biological or physiological event becomes synchronized with an environmental agent, often involving chemicals or pheromones.

Biophysical Ways

Methods or approaches that combine biological and physical sciences to understand phenomena.