If a Firm Is a Price Taker and Wants to Earn

question 214

Multiple Choice

If a firm is a price taker and wants to earn as much profit as possible, it should expand output

• A) to the quantity at which marginal cost is minimized.
• B) as long as marginal cost is less than price.
• C) to the quantity at which average total costs are minimized.
• D) to try to sell all the output it can produce so that its average fixed costs will be minimized.

---

Definitions:

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

Negative Reviews

Critical or unfavorable customer feedback about a product or service, typically published on review websites or social media platforms.

Retail Websites

Online platforms where goods and services are sold directly to consumers, encompassing a wide range of e-commerce sites.

Perceived Performance

An individual's perception of how well a product or service meets their expectations and needs.