Suppose a Perfectly Competitive Firm Is Producing 1,000 Units of Output

question 109

Multiple Choice

Suppose a perfectly competitive firm is producing 1,000 units of output and the marginal cost of the 1,000^th unit is $7. If the firm can sell each unit of output for $7 and the firm's revenue is sufficient to cover its variable cost, the firm should:

• A)leave production unchanged.
• B)increase price to increase profits.
• C)increase production to increase profits.
• D)decrease production to lower losses.

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Definitions:

Throwing Rocks

The act of physically propelling stones or small boulders, often used in contexts of play, aggression, or protest.

Nurturing

Providing support, care, and encouragement to help someone grow, develop, or succeed.

Cold and Distant

Describing someone as cold and distant means they are emotionally unresponsive, unfriendly, and tend to keep others at a distance.

Punishment

The process by which a behavior is weakened, decreasing the likelihood of repetition.