Shama Is Producing Candles in a Perfectly Competitive Market

question 257

Multiple Choice

Shama is producing candles in a perfectly competitive market.When she produces 500 candles,her total cost is $250.If she produces one additional candle,her total cost increases to $260.In order to maximize her profit,she should produce the additional candle

• A) if the market price for a candle is $12.
• B) only if the market price exceeds $260 for a candle.
• C) only if the market price exceeds $250 for a candle.
• D) if the market price for a candle exceeds $0.50.
• E) if her price exceeds her average total cost.

---

Definitions:

Telecommunications Technologies

Various forms of technology designed to transmit information over distances, including telephone, radio, satellite, and internet technologies.

Digital Offerings

Products or services offered through digital platforms, such as software, online services, or digital content.

Substitute Firms

Companies that offer alternative or replacement products and services that meet the same needs or demand of consumers.

Target Markets

Specific groups of potential customers at which a company directs its marketing efforts and product offerings.