If a Firm Is a Price Taker and Wants to Earn

question 214

Multiple Choice

If a firm is a price taker and wants to earn as much profit as possible, it should expand output

• A) to the quantity at which marginal cost is minimized.
• B) as long as marginal cost is less than price.
• C) to the quantity at which average total costs are minimized.
• D) to try to sell all the output it can produce so that its average fixed costs will be minimized.

---

Definitions:

Good Writing

The art of expressing ideas or narrating stories effectively and engagingly, often characterized by clarity, coherence, and correct grammar.

Digital Documents

Text, images, or other content created, stored, and viewed in electronic format.

Formal Enough

A phrase indicating that the language, appearance, or behavior meets the required level of formality for a given situation.

Audience's Expectations

This term relates to the anticipations or assumptions held by an audience regarding a specific message, product, or experience.