A Competitive Firm Has Been Selling Its Output for $20

question 367

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, its

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

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Definitions:

Principle of Falsifiability

A criterion for scientific inquiry proposed by philosopher Karl Popper, stating that for a theory to be considered scientific, it must be able to be tested and potentially proven false.

Heritability of Personality

The extent to which genetic factors contribute to individual differences in personality traits.

Heritability

The genetic contribution to the variance seen in a population for any particular trait or behavior.

Genetic Predisposition

The increased likelihood of developing a particular disease based on a person's genetic makeup.