A Competitive Price-Searcher Firm Is Currently Producing 10 Units of Output

question 104

Multiple Choice

A competitive price-searcher firm is currently producing 10 units of output. At this level of output the firm is charging a price equal to $10, has marginal revenue equal to $6, has marginal cost equal to $6, and has average total cost equal to $12. From this information we can conclude that

• A) the firm is currently maximizing its profit.
• B) the profits of the firm are positive.
• C) firms are likely to enter this market in the long run.
• D) the firm would earn more profit by expanding output

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Definitions:

Body Trait

A physical or physiological characteristic that is genetically determined.

Anatomical Position

When the body is standing upright and facing forward with the arms at the side and the palms of the hands facing forward.

Midline of Body

An imaginary line that divides the body into equal right and left halves, often used as a reference point in medical and fitness contexts.

Cardiovascular System

The body's system comprising the heart and blood vessels, responsible for circulating blood and oxygen throughout the body.