A Perfectly Competitive Firm's Output Price Is $7 and the Firm

question 80

Multiple Choice

A perfectly competitive firm's output price is $7 and the firm is producing 1,000 units with a marginal cost of $7.The firm should

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

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Definitions:

Basic Taste

One of the five sensations detected by the taste buds on the tongue: sweetness, sourness, saltiness, bitterness, and umami.

Umami

One of the five basic tastes, often described as savory or meaty, and is a flavor enhancer found in foods like tomatoes and cheese.

Basic Taste

One of the fundamental groups of taste sensations, including sweet, sour, salty, bitter, and umami.

Gestalt Principle

A theory in psychology that proposes the human brain sees objects in their entirety before perceiving their individual parts, suggesting that the whole is greater than the sum of its parts.