Suppose ABC Corp

question 39

Multiple Choice

Suppose ABC Corp.is a firm producing newsprint in a perfectly competitive industry.We have the following information about the firm's production: - output (Q) = 1500 tonnes per month
- average total cost (ATC) = $627 per tonne
- average variable cost (AVC) = $614 per tonne
- marginal revenue (MR) = $620 per tonne
- marginal cost (MC) = $620 per tonne
In the short run,this firm should

• A)reduce output because the price per tonne is less than ATC.
• B)shut down because the firm is incurring economic losses.
• C)maintain production at the current level.
• D)increase output because MR is greater than AVC.
• E)Not possible to determine because the price of the product is not known.

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Definitions:

Cognitive Challenges

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Intelligence Scale

A method used to measure an individual's intellectual capabilities in various dimensions, usually resulting in a score.

Binet and Simon

Alfred Binet and Theodore Simon were French psychologists who, in the early 20th century, developed the first intelligence test to identify children needing special education.

Practical Intelligence

A type of intelligence that involves the ability to solve everyday problems by utilizing knowledge gained from experience.