Suppose That Carla's Candy Shop Finds That at the Current

question 74

Multiple Choice

Suppose that Carla's Candy Shop finds that at the current level of output,marginal revenue is below marginal cost and average variable cost is below price.If the market price is held constant,Carla's Candy Shop should __________ in order to maximize profits.

• A)raise output
• B)reduce its price
• C)reduce output
• D)close down
• E)maintain its current output level

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Definitions:

Withdrawal

A psychological or physical retreat from a situation, relationship, or obligation.

Progression

Refers to the act of moving forward or advancing towards a more developed state or stage.

Stimulating Performance

The process of encouraging or motivating employees to improve their work output or to perform at a higher standard.

Job Descriptive Index

A survey instrument that measures employees' job satisfaction with various aspects of their job, including the work itself, supervision, pay, co-workers, and opportunities for promotion.