Scenario 13-1 Assume a Certain Firm in a Competitive Market Is Producing

question 153

Multiple Choice

Scenario 13-1
Assume a certain firm in a competitive market is producing Q = 1,000 units of output.At Q = 1,000,the firm's marginal cost equals $15 and its average total cost equals $11.The firm sells its output for $12 per unit.
-Refer to Scenario 13-1.At Q = 1,000,the firm's profits equal

• A) $-200.
• B) $1,000.
• C) $3,000.
• D) $4,000.

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Definitions:

Attractive Alternatives

Options that are appealing or desirable in comparison to others available, often considered in decision-making processes.

Weighing Facts

The process of assessing the importance, relevance, or truth of information or evidence before making a decision or judgment.

Cognitive Dissonance Theory

A theory suggesting that individuals experience discomfort when holding two or more conflicting cognitions, leading them to change their attitudes, beliefs, or actions to reduce the dissonance.

Human Consistency

The tendency of an individual to maintain the same behaviors, attitudes, and beliefs over time.