A Perfectly Competitive Firm Is Producing at the Quantity Where

question 109

Multiple Choice

A perfectly competitive firm is producing at the quantity where marginal cost is $6 and average total cost is $4.The price of the good is $5.To maximize its profit,this firm should

• A) raise its price.
• B) lower its price.
• C) increase its output.
• D) decrease its output.
• E) increase the price it charges for its product.

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Definitions:

Occipital Lobes

The region of the brain that is primarily responsible for visual processing.

Hypothalamus

A region of the brain that controls an array of bodily functions, including temperature regulation, thirst, hunger, sleep, and emotional activity.

Pituitary Gland

A small endocrine gland in the brain that produces hormones regulating growth, metabolism, and reproduction.

Hormones

Biological compounds synthesized within the body responsible for regulating and managing the functions of specific cells or organs.