Suppose the Price of a Can Was $5

question 110

Multiple Choice

Suppose the price of a can was $5.14.In this case,to maximize its profit,the firm illustrated in the figure above would

• A) increase its production and would make an economic profit.
• B) not change its production and would make a normal profit.
• C) not change its production and would make an economic profit.
• D) increase its production and would incur an economic loss.
• E) not change its production and would incur an economic loss.

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Definitions:

Gross Private Domestic Investment

The total amount of domestic capital investment in non-governmental sectors, including both non-residential and residential assets.

Producer Plant

Typically refers to a facility or set of facilities that processes raw materials or components to manufacture goods or products for sale. In some contexts, it might specifically denote a facility involved in agricultural production.

Residential Construction

The building and selling of residential buildings such as houses, apartments, and condominiums.

Capacity Utilization Rate

The percentage of a firm's total possible production output that is actually being achieved, indicating how efficiently resources are being used.