This Table Shows the Total Costs for Various Levels of Output

question 77

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,when 1 unit is produced:

• A)marginal costs exceed marginal revenue,and the firm should produce more.
• B)marginal revenue exceeds marginal costs,and the firm should produce more.
• C)marginal revenue exceeds marginal costs,and the firm should produce less.
• D)marginal costs exceed marginal revenue,and the firm should produce less.

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Definitions:

Price-Discriminating Monopolist

A monopolist that charges different prices to different consumers or groups of consumers for the same product, to maximize profits.

Price Elasticity

The responsiveness of the quantity of a product demanded to a variation in its price, determined by dividing the percentage variation in the quantity demanded by the percentage modification in the product’s price.

Separate Markets

Economic markets that are distinctly separated by geographical boundaries, preferences, or other factors, preventing the mixing of products or services.

Resold

The action of selling an item or asset that has previously been sold or owned by someone else.