The Above Figure Shows Some a Firm's Cost Curves and Its

question 7

Multiple Choice

The above figure shows some a firm's cost curves and its marginal revenue curve.
-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 zero economic 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:

Geographical Adjustments

Adjustments made to policies, prices, or strategies based on the geographical location of markets or resources.

Discounts

are reductions from the usual cost of something, often used to prompt sales or as a negotiation tactic.

Allowances

Discounts or financial concessions given to customers, employees, or distributors as an incentive or for defective goods.

Cumulative Quantity Discounts

Price reductions applied to purchases based on the accumulated quantity bought over a specific time period, incentivizing larger orders.