Suppose That, at the Current Level of Output, a Firm

question 36

Multiple Choice

Suppose that, at the current level of output, a firm in a perfectly competitive market is producing at a level such that price exceeds marginal cost, P > MC. Marginal cost is normally shaped (U-shaped) . The firm:

• A)is currently maximizing profit since it is charging a price higher than marginal cost.
• B)could increase profit by lowering the level of output.
• C)could increase profit by increasing the level of output.
• D)cannot increase profit without raising price.

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Definitions:

Dominant Traits

Genetic characteristics that are expressed in an organism even when only one copy of the gene is present.

Incomplete Dominance

A genetic phenomenon where the phenotype of the heterozygote lies somewhere between the phenotypes of the two homozygotes.

Red-Green Colorblindness

A form of color vision deficiency where individuals have difficulty distinguishing between red and green hues due to the absence or malfunction of red or green retinal photoreceptors.

Recessive Gene

A gene that produces its characteristic phenotype only when its allele is identical.