Exhibit 14 -Refer to Exhibit 14

question 10

Multiple Choice

Exhibit 14.2.
$\begin{array} { | c | c | c | c| } \hline \text { Quantity } & \text { Fixad Cust } & \text { Marginal Cast } & \text { Avg. Variable Cost } \\\hline 1 & \$100 & \$52 & \$5 2 \\\hline 2 & 100 & 44 & 48 \\\hline 3 & 100 & 37 & 44.33 \\\hline 4 & 100 & 31 & 41 \\\hline 5 & 100 & 26 & 38 \\\hline\end{array}$
-Refer to Exhibit 14.2. If the market price is $26, what quantity should the firm produce in order to maximize profits.

• A) 5
• B) 0
• C) 26

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Definitions:

External Locus

The belief that external forces or situations beyond one's own control dictate the outcomes of one's actions.

Lower Status

The ranking or position that is considered inferior or less prestigious within a social or organizational hierarchy.

Higher Status

Describes a position of greater power, respect, or social standing compared to others.

Fundamental Attribution Error

The tendency for people to over-emphasize personality-based explanations for behaviors observed in others while underestimating the influence of external factors.