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:

Global Marketing Environment

The external factors, including economic, social, technological, and political conditions, that affect the marketing strategies of companies on a global scale.

Customer Service

The assistance and advice provided by a company to those people who buy or use its products or services.

Alternate Solutions

Different strategies, methods, or approaches considered in problem-solving or decision-making processes in order to achieve desired outcomes.

Consumer Confidence

An economic indicator that measures the degree of optimism or pessimism that consumers feel about the overall state of the economy and their personal financial situation.