If a Perfectly Competitive Firm Finds That It Is Producing

question 111

Multiple Choice

If a perfectly competitive firm finds that it is producing an amount of output such that MR > MC and P > AVC, it will

• A) leave the industry.
• B) decrease its output.
• C) increase its output.
• D) not change its behavior.

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Definitions:

Mandatory Minimum Sentences

Laws that set the minimum sentencing guidelines judges must follow when convicting individuals of certain crimes, reducing judicial discretion.

Unethical

Actions or behaviors that are considered wrong or improper according to moral principles.

Disproportionately Severe

Punishments or actions that are excessively harsh or severe in relation to the nature of the offense or situation.

Morality Policy

Refers to government actions designed to address issues considered to fundamentally pertain to moral values, such as abortion, drug use, and same-sex marriage.