Assume That Price Is Greater Than Average Variable Cost

question 58

Multiple Choice

Assume that price is greater than average variable cost.If a perfectly competitive seller is producing at an output where price is $11 and the marginal cost is $14.54, then to maximize profits the firm should

• A)continue producing at the current output.
• B)produce a larger level of output.
• C)produce a smaller level of output.
• D)There is not enough information given to answer the question.

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Definitions:

Actual Authority

The specific power given to an agent by a principal, derived from their agreement and can be express or implied based on their actions.

Apparent Authority

The perception by a third party that an agent has the authority to act on behalf of a principal, even if such authority has not been explicitly or implicitly granted.

Principal Liable

Refers to the legal responsibility of the principal party in a relationship (such as an employer) for certain actions of their agents or employees under the doctrine of vicarious liability.

Apparent Authority

The impression given to third parties that an agent is authorized to act on behalf of a principal, even if such authority has not been formally granted.