When a Profit-Maximising Firm's Fixed Costs Are Considered Sunk in the Short

question 139

Multiple Choice

When a profit-maximising firm's fixed costs are considered sunk in the short run, it:

• A)can safely ignore fixed costs when deciding how much to produce
• B)will never show losses
• C)can set its price above marginal cost
• D)maximises profit by choosing an output level where price exceeds marginal cost

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Definitions:

Density-Dependent

Referring to factors whose effects on a population vary depending on the population density.

Population Control

Strategies or policies aimed at regulating the growth rate of a population to ensure sustainability and prevent overuse of resources.

Predation

The biological interaction where one organism, the predator, feeds on another organism, its prey.

Brazilian Rain Forest

The Amazon Rainforest in Brazil, which is the largest tropical rainforest in the world, known for its biodiversity.