Refer to the Accompanying Graph

question 42

Multiple Choice

Refer to the accompanying graph. If this firm is a price taker and the price of each unit of output is $15, then this firm should:

• A)produce 60 units of output.
• B)shut down in the short run.
• C)raise its price to increase its revenue.
• D)lower its output to decrease its marginal cost.

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Definitions:

Conjunct

A conjunct is a component of a compound sentence formed by the logical connective ‘and’, contributing to the compound's overall truth value.

Conjunction

A word used to connect clauses or sentences (in grammar) or the operation in logic that forms a compound statement which is true only if both of its components are true.

Contingency

An upcoming occurrence or condition that has the potential to happen but whose certainty cannot be guaranteed.

Disjunct

A component proposition or statement within a disjunction that, by itself, could be true or false.