Suppose That in a Perfectly Competitive Industry,the Market Price of the Product

question 27

Multiple Choice

Suppose that in a perfectly competitive industry,the market price of the product is $27.A firm is producing the output level at which average total cost equals marginal cost,both of which are $25.Average variable cost is $23.To maximize profits in the short run,the firm should

• A)reduce its output.
• B)increase its output.
• C)leave its output unchanged.
• D)shut down.
• E)change the price of the product.

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Definitions:

Totipotency

The ability of a single cell to develop into a complete organism, possessing all necessary cell types.

Mosaic Development

A pattern of development in which each cell of the embryo contributes to a specific part of the adult organism's body, with limited capability for regeneration or replacement by other cells.

Gene Amplification

An increase in the number of copies of a specific gene, often resulting in enhanced expression of the gene product.

Early Development

The initial stages in the growth and differentiation process of an organism after fertilization.