A Perfectly Competitive Firm Is Producing 75 Units of Output

question 20

Multiple Choice

A perfectly competitive firm is producing 75 units of output.The market price is $7 and the firm's marginal cost is $8.The firm should

• A) lower its price.
• B) raise its price.
• C) increase production.
• D) decrease production.

---

Definitions:

Peripheral Nervous System

The portion of the nervous system that lies outside the brain and spinal cord, consisting of nerves and ganglia, involved in connecting the central nervous system to the rest of the body.

Somatic Nervous System

A component of the peripheral nervous system responsible for the voluntary regulation of body movements through skeletal muscles.

Epinephrine

A biochemical substance, also referred to as adrenaline, that functions both as a hormone and a neurotransmitter, playing a pivotal role in initiating the body's fight-or-flight reaction.

Thyroxin

A hormone produced by the thyroid gland that regulates metabolism, energy production, and growth and development.