A Competitive Firm Has Been Selling Its Output for $20

question 374

Multiple Choice

A competitive firm has been selling its output for $20 per unit and has been maximizing its profit,which is positive.Then,the price rises to $25,and the firm makes whatever adjustments are necessary to maximize its profit at the now-higher price.Once the firm has adjusted,which of the following statements is correct?

• A) The firm's quantity of output is higher than it was previously.
• B) The firm's average total cost is higher than it was previously.
• C) The firm's marginal revenue is higher than it was previously.
• D) All of the above are correct.

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Definitions:

Self-monitoring

The regulation and adjustment of one's behavior in response to social situations and cues.

Authoritarianism

Authoritarianism describes a political system characterized by strong central power and limited political freedoms.

Essential-trait Approach

A theory in personality psychology focusing on identifying a core set of traits that significantly describe and predict an individual's personality.

Single-trait Approach

A method in personality research that focuses on how one particular trait affects behavior.