Assume for a Competitive Firm That MC = AVC at $12

question 165

Multiple Choice

Assume for a competitive firm that MC = AVC at $12, MC = ATC at $20, and MC = MR at $16. This firm will

• A) realize a profit of $4 per unit of output.
• B) maximize its profit by producing in the short run.
• C) minimize its losses by producing in the short run.
• D) shut down in the short run.

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Definitions:

Business Invitee

A person who enters commercial premises for the purpose directly or indirectly related to the business of the premises owner, under the owner's invitation.

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A visitor to a company or organization for professional reasons, often invited for meetings, partnerships, or conferences.

Business Premises

The physical location of a business, including all its land and buildings, where commercial operations are conducted.

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A dispute or question that requires interpretation of the law, often arising within the context of a lawsuit or legal proceeding.