A Firm's Optimal Output Is 1,000 Units Per Month,with a Fixed

question 261

Multiple Choice

A firm's optimal output is 1,000 units per month,with a fixed cost of $300 per month and variable cost of $200 per month.The market price of this good is $0.40.The firm decides to shut down.In such a situation,this firm should ________.

• A) down production in the short run
• B) not shut down production in the short run
• C) produce more than 1,000 units
• D) continue production for 1 month and then shut down

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Definitions:

Sensorimotor Substage

The phases within the first stage of Piaget's theory of cognitive development, characterized by the development of sensory and motor abilities in infants.

First Month

Refers to the initial month of a period, which can relate to the life of an infant, the start of a project, or any new beginning.

After Birth

Refers to the period following the birth of an infant, focusing on recovery for the mother and adjustment to life for the newborn.

Sensorimotor Substage

A phase within Piaget's sensorimotor stage, which describes the development of infants through their senses and motor activities.