This Table Shows the Total Costs for Various Levels of Output

question 78

Multiple Choice

This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.
According to the table shown,the firm's profit:

• A)is maximized at 3 units of output.
• B)is maximized at 4 units of output.
• C)is maximized at 5 units of output.
• D)is not maximized at any level of output given.

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Definitions:

Unexpectedly High

A level or measure that exceeds what was anticipated or forecasted.

Natural Rate

The long-term rate of unemployment around which the unemployment rate fluctuates, or the rate of output expected when resources are fully employed.

Aggregate Demand

The complete demand for all categories of goods and services in an economy, evaluated at a given price level for a particular period.