Scenario 14-2 Assume a Certain Firm Is Producing Q = 1,000 Units

question 241

Multiple Choice

Scenario 14-2
Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $20 and its average total cost equals $25. The firm sells its output for $30 per unit.
-Refer to Scenario 14-2. To maximize its profit, the firm should

• A)increase its output.
• B)continue to produce 1,000 units.
• C)decrease its output but continue to produce.
• D)shut down.

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Definitions:

Piaget's Theory

A theory of cognitive development that describes how children construct a mental model of the world through stages of cognitive growth.

Objective Morality

The belief in moral truths that are universal and independent of individual opinions or feelings.

Autonomous Morality

The stage of moral development where individuals recognize that rules and laws are created for the good of the collective and can be changed through consensus.

Preconventional Stage

The first level in Kohlberg's theory of moral development, characterized by an individual's response to moral issues based on consequences to oneself.