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:

Electrical Noise Interference

Unwanted disturbances superimposed on a useful signal that tend to obscure its information content, often caused by electromagnetic disturbances.

Logic Circuits

Electronic circuits that implement logical functions, they are the building blocks of digital devices, able to process binary data input into specific outputs.

I/O System

An Input/Output System is the component of a computer or PLC responsible for communication with the external environment through devices like sensors and actuators.

CPU

A CPU, or Central Processing Unit, is the primary component of a computer responsible for interpreting and executing instructions and running software.