A Company Finds That at the Output Level at Which

question 428

Multiple Choice

A company finds that at the output level at which marginal cost equals marginal revenue, TC = $500, TVC = $400, and TR = $450. Your advice to the firm is

• A) shut down, as TC > TR.
• B) reduce output to reduce the cost of production.
• C) increase output to reduce the per unit cost of production.
• D) continue to produce because loss is less than TFC.

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Definitions:

Limbs

Appendages of the human or animal body used for movement and manipulation, including arms, legs, wings, or fins.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, notorious for its addictive properties and ability to increase energy and alertness.

Utero

Latin term for "in the uterus," often used in medical and biological contexts to describe something occurring within the uterus.

Language

Is a system of communication that involves the use of words in a structured and conventional way, allowing individuals to express ideas, emotions, and thoughts.