Scenario 14-3 Suppose a Certain Competitive Firm Is Producing Q=500 Units of Units

question 9

Multiple Choice

Scenario 14-3
Suppose a certain competitive firm is producing Q=500 units of output. The marginal cost of the 500th unit is $17, and the average total cost of producing 500 units is $12. The firm sells its output for $20.
-Refer to Scenario 14-3. If the marginal cost of producing the 501st unit would be $19, producing and selling the 501st unit would

• A)decrease the firm's profit by $19.
• B)decrease the firm's profit by $2.
• C)increase the firm's profit by $1.
• D)increase the firm's profit by $3.

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Definitions:

Psychological Disorders

Mental disorders characterized by patterns of behavior or thought that are significantly distressed or disabled, which are not considered part of normal development in a person's culture.

Diagnose

The process of identifying a disease or condition from its signs and symptoms through examination, tests, and other medical procedures.

Abnormal Behavior

Patterns of emotion, thought, and action deemed pathological for one or more reasons, such as distress, dysfunction, or deviance.

Distress

Negative stress that arises from challenging or adverse situations and can lead to discomfort or anxiety.