Suppose That When a Perfectly Competitive Firm Produces 1,000 Units

question 115

Multiple Choice

Suppose that when a perfectly competitive firm produces 1,000 units of output, its total variable cost is $1,900. If the marginal cost of producing the 1,000^th unit is $1.70, and if the market price of each unit of output is $1.70, then the firm should:

• A)shut down.
• B)raise its price.
• C)increase output.
• D)continue to produce 1000 units.

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Definitions:

Contemplation Stage

A phase in the Transtheoretical Model of behavior change where individuals are thinking about changing a behavior but have not yet taken action.

Seriously Quitting

The sincere intent and subsequent action to permanently stop engaging in a harmful behavior, such as smoking or drinking alcohol.

Behavioral Theory

A framework that explains how behaviors are learned and maintained through interactions with the environment, including reinforcements and punishments.

Health Belief

An individual's perception and attitude towards health and illness, influencing their health behaviors and decisions.