Serena Sells Soybeans in a Perfectly Competitive Market

question 153

Multiple Choice

Serena sells soybeans in a perfectly competitive market. If MC = $3, MR = $4, ATC = $5, and AVC = $2, then to maximize profit, she should

• A) shut down.
• B) increase production.
• C) decrease production.
• D) increase her price.

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Definitions:

Productive Integration

refers to the effective assimilation and utilization of resources, systems, or workers within an organization or economy to maximize productivity.

Sourcing

The process of finding and selecting suppliers or sources from which goods and services are obtained.

Public Relations Office

An office or department within an organization responsible for managing and guiding the public image and communications of the organization.

Media Regulation

The control or guidance of mass media by governments and other bodies to ensure compliance with laws, standards, and policies, often to protect public interest.